- AWS is "booming," and CEO Andy Jassy stated it could "very possibly be a trillion-dollar annual revenue business for us in time."
- Two of Amazon's AI-related divisions grew by triple-digit percentages, with each exceeding $25 billion annual revenue run rates.
- Amazon has made investments and signed partnerships worth billions with OpenAI and Anthropic.
- Amazon increased its estimate for capital expenditures in 2026 to $220 billion, up from $200 billion.
Amazon's revenue increased 20% to over $200 billion in the second quarter, driven by a 37% growth in its cloud business, AWS, which reached $42.2 billion.56
CEO Andy Jassy described AWS as "booming" during a recent analyst call, emphasizing the potential for the cloud service to evolve into a trillion-dollar annual revenue business. He stated, "very possibly be a trillion-dollar annual revenue business for us in time."12
The company has also reported significant growth in its AI-related divisions, with both its AI cloud and chips businesses exceeding $25 billion in annual revenue run rates, indicating a strong demand for AI solutions.3
To support this growth, Amazon has made substantial investments and formed partnerships with leading AI firms, including OpenAI and Anthropic. Additionally, the company has revised its capital expenditure estimates, now projecting to spend $220 billion this year, up from a previous estimate of $200 billion for 2026.4
This strategic focus on cloud and AI positions Amazon to capitalize on the growing demand for technology services, potentially reshaping the landscape of the industry.
“Amazon's AI-related divisions have seen triple-digit growth, each exceeding $25 billion in annual revenue run rates. The company also increased its 2026 capital expenditure estimate to $220 billion, up from $200 billion, reflecting its commitment to expanding its cloud and AI capabilities.”
Yahoo Finance
