Amazon CEO: AWS has multi-billion dollar revenue run rate in AI already

Sales rose to $25bn during the first three months of 2024, up 17 per cent year-on-year

By Matthew Corrigan

Published: May 1, 2024 Updated: May 2, 2024

Sales rose to $25bn during the first three months of 2024, up 17 per cent year-on-year

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Amazon Web Services (AWS) has announced year-on-year sales growth as it released first quarter figures ahead of forecasts.

AWS has reported a rise in sales to $25 billion during the first three months of 2024, up 17 per cent on the same period last year and ahead of the $24.5 billion forecast. Sales growth at the company is also faster than the previous quarter's 13 per cent rise.

The company said demand for artificial intelligence has bolstered the growth in sales, with businesses spending more on cloud computing services including AWS' new generative AI tools.

Andy Jassy, chief executive at AWS, said the company was, now at a $100 billion annual revenue run rate.

Margins at the division also grew to 38 per cent, compared with 30 per cent recorded in the previous quarter.

Brian Olsavsky, chief financial officer at Amazon confirmed that Generative AI is, now a multi-billion dollar revenue run rate business, for the company, adding that capital expenditures were expected to rise meaningfully to support further growth in cloud and AI.

Last August, Jassy told analysts that every single team within the company was working with generative AI, adding that the technology can help Amazon become more cost-effective and streamlined in how we run operations and various businesses, to the absolute heart of every customer experience in which we offer.

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