Amazon says its AI infrastructure bet is lifting AWS growth

Amazon says its AI infrastructure push is starting to show up in AWS growth, even as the spending bill gets heavier. In its latest earnings report, the company said AWS sales rose 37% year over year to $42.2 billion, its fastest growth in 18 quarters and a $169 billion annualized revenue run rate.

CEO Andy Jassy said AWS is “booming” and that Amazon’s AI and chip businesses have each passed a $25 billion annual revenue run rate. The company also said AWS’s AI business is growing at triple-digit percentages, with demand tied to Bedrock, Trainium and cloud commitments from AI labs and enterprise customers.

The practical takeaway is that Amazon is arguing it does not need to own the single best frontier model to win from AI. It wants AWS to be the place companies rent compute, choose models and run agents at scale.

There is a cost: Amazon said free cash flow turned into a $7.6 billion outflow, mainly because property and equipment purchases rose sharply for AI infrastructure. For readers tracking the AI market, this is another sign that the race is moving from model demos into capital-intensive cloud capacity.