Amazon Reveals $15 Billion AI Revenue

Amazon CEO Andy Jassy unveiled concrete figures for the cloud business AWS for the first time. In a shareholder letter, he revealed that annualised revenue from AI services at the unit exceeded $15 billion.

Based on Q1 performance, the AI revenue accounts for about 10% of AWS’s $142 billion revenue run rate, underscoring accelerating returns from years of heavy investment. Jassy stated that three years after AWS launched commercially, it had a $58 million revenue run rate, but noted AI revenue is nearly 260 times larger than the cloud units at the same point and is ascending rapidly.

He defended Amazon’s aggressive AI investment strategy, arguing it positions the company for long-term leadership and significantly higher future profit and free cash flow. The tech giant’s aggressive spending plan includes a projected $200 billion in capex this year, with a large portion going towards AI and related infrastructure. “We’re not investing approximately $200 billion in capex in 2026 on a hunch,” he stated.

Jassy noted that a large portion of future AWS investment already has customer commitments and is expected to be monetised in 2027 and 2028. He highlighted strong momentum in Amazon’s custom chip business, including Graviton, Trainium, and Nitro products, which doubled its annualised revenue run rate from 4Q25 to more than $20 billion, growing triple-digit percentages year-on-year.

He added that the chip business is on fire, noting that it changes the economics for AWS and will be much larger than most think. The CEO is also bullish on selling its own chips to third parties. “There’s so much demand for our chips that it’s quite possible we’ll sell racks of them to third parties in the future,” added Jassy.