AWS Growth Accelerates to 37% as Amazon Revenue Tops $200 Billion
Amazon Web Services generated $42.2 billion in second-quarter revenue, up 37% year over year, as Amazon's AI and custom-chip businesses each passed a $25 billion annualized revenue run rate.
Why it matters: AWS growth is one of the clearest measures of whether enterprise AI spending is translating into revenue for hyperscale cloud providers.
Amazon Web Services delivered its fastest growth in 18 quarters as enterprise demand for artificial-intelligence infrastructure accelerated.
AWS revenue increased 37% year over year to $42.2 billion during Amazon's second quarter. Amazon reported total quarterly revenue of $200.6 billion, while its shares rose in extended trading after the results.
CEO Andy Jassy said Amazon's AI and custom-chip businesses have each surpassed annualized revenue run rates of $25 billion. AWS has expanded relationships with companies including OpenAI, Anthropic, Meta, Pinterest and Snowflake as customers purchase cloud capacity, specialized processors and managed AI services.
The results provide evidence that enterprise AI demand is becoming material revenue for the major cloud platforms. Amazon's advertising business also remained strong, with sales rising 26% to $19.8 billion.
The infrastructure expansion carries a substantial cost. Amazon reported a trailing-12-month free-cash-flow outflow of $7.6 billion, compared with $18.2 billion in positive free cash flow a year earlier, as spending increased across data centers, chips, networking and power capacity.
AWS's acceleration strengthens Amazon's argument that its capital spending is supporting real customer demand. The negative cash flow also shows that the economics of the AI buildout remain unresolved and will depend on how quickly new capacity becomes productive revenue.