Amazon said its cloud unit now generates more than $15 billion in annualized revenue from artificial intelligence services, as the company gave fresh figures on a business tied to its heavy AI spending. Chief Executive Andy Jassy shared the update in his annual shareholder letter and said customer commitments already cover a substantial portion of planned AWS capital spending. Amazon shares rose about 1.5% in premarket trading after the update.
Amazon said AWS AI services are now running at more than $15 billion in annualized revenue. The figure is based on first-quarter performance and marks the first time the company has disclosed a revenue number for this part of the business.
The amount equals roughly 10% of AWS’s $142 billion revenue run rate. The update gives investors a direct number for a fast-growing part of Amazon’s cloud business after years of large spending on AI tools and infrastructure.
Jassy said AI revenue is “ascending rapidly.” He also said AWS would be growing faster without industry-wide capacity limits, which continue to affect supply across the technology sector.
Amazon has faced pressure to show that its AI spending can produce sales growth. In February, the company said capital spending this year would reach about $200 billion, with much of this tied to AI development and infrastructure.
This forecast raised concerns about how quickly large technology companies are expanding AI budgets. In response, Jassy said Amazon’s spending plans are tied to existing demand rather than future assumptions.
He wrote, “We’re not investing ... on a hunch,” and added that Amazon already has customer commitments for a substantial portion of the AWS capital spending it expects to make in 2026. He also said much of this expenditure is expected to generate revenue in 2027 and 2028.
Jassy also said Amazon’s custom chip business has doubled its annualized revenue run rate to more than $20 billion. This compares with the $10 billion figure the company disclosed alongside its fourth-quarter results.
The chip business includes Graviton processors, Trainium AI chips, and Nitro networking cards. Amazon is expanding those products as large technology companies look for alternatives to costly Nvidia AI chips and aim to manage computing costs more closely.
Jassy said demand for Amazon’s chips remains strong. He added, “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.”
Amazon’s latest update shows how deeply AI is tied to its cloud and infrastructure plans. Jassy said AWS could be growing faster if capacity constraints across the industry were less severe, which suggests demand remains strong.
Amazon is also reshaping other parts of the business while it increases AI investment. The company has cut around 30,000 jobs in recent months as it reduces bureaucracy, exits weaker operations, and adjusts after pandemic-era hiring.
At the same time, Amazon continues to build its own AI stack through cloud services, data center expansion, and custom chips. The new figures from AWS AI services and Amazon’s chip unit show that both businesses are growing as the company puts more resources into artificial intelligence.
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