Amazon Web Services recorded its fastest growth rate in 15 quarters, with net sales rising 28% year over year to $37.6 billion, driven by surging demand for AI compute infrastructure. CEO Andy Jassy credited the AI boom as the primary engine behind AWS’s acceleration, noting the scale of growth was historically unprecedented for a business of its size.
Jassy framed the AI wave as dwarfing previous technology cycles, pointing out that AWS’s AI revenue run rate in its first three years has reached over $15 billion — vastly outpacing AWS’s own early cloud growth at a comparable stage.
Amazon’s overall revenue rose 17% to $181.5 billion. However, free cash flow fell sharply to $1.2 billion over the trailing twelve months, down 95% from the prior year, as capital expenditure on data centers, chips, and infrastructure surged by nearly $60 billion. Jassy described this as an expected short-term consequence of rapid expansion, drawing parallels to Amazon’s earlier cloud buildout.
