Amazon’s cloud business is surging — and so is its capital spending

Amazon’s cloud business, Amazon Web Services (AWS), saw its net sales increase 28% year-over-year, reaching $37.6 billion, marking the fastest growth rate in 15 quarters. AWS’ success is attributed to its pivotal role in fueling the AI boom, providing compute resources to the industry. Andy Jassy, Amazon’s CEO, highlighted this growth as unprecedented, comparing it to the early days of AWS, which had a $58 million revenue run rate three years after its launch. By the first three years of the current AI wave, AWS’s AI revenue run rate exceeded $15 billion, nearly 260 times larger than its initial run rate.

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