AWS Reports Strongest Growth in Two Years as AI Workloads Scale
Amazon's cloud unit posts $33 billion in quarterly revenue, with operating margin expanding to 39 percent.
Amazon Web Services reported first-quarter revenue of $32.8 billion, up 22 percent year-on-year — its strongest growth rate since the second quarter of 2023.
Operating margin expanded to 38.9 percent, a level that pushes AWS profitability beyond Microsoft Azure's reported segment economics for the first time in three years.
CEO Andy Jassy attributed the acceleration to enterprise AI workloads built on Bedrock and to a broader "return to digitisation" among customers that had paused discretionary spending through the prior eighteen months.
Capital expenditure guidance for the full year was raised to $115 billion — substantially above the consensus going into the quarter and reflective of continued aggressive investment in custom Trainium and Inferentia silicon.
More from Technology
Nvidia and the Trillion-Dollar AI Infrastructure Race
From Phoenix to Abu Dhabi, hyperscalers are pouring unprecedented sums into compute. The build-out is reshaping energy markets, real estate, and the geopolitics of silicon.
OpenAI's $300 Billion Valuation Marks AI Capital Cycle Peak
The latest tender offer crystallises a valuation expansion that has outpaced even the company's accelerating revenue trajectory.
Anthropic's Claude Opus 4 Sets New Benchmark on Reasoning Tasks
The latest model from the San Francisco lab posts state-of-the-art results on advanced reasoning evaluations, intensifying competitive pressure on OpenAI and Google.