Growth accelerates at AWS, but so does CapEx spend on AI - with lots more to come, warns CEO Andy Jassy

https://diginomica.com/sites/default/files/images/2024-12/Screenshot%202024-12-04%20at%2013.51.35.png

Revenue at Amazon Web Services jumped 37% to $42.2 billion in the second quarter ended June 30, the fastest growth rate since 2021. But CapEx spend on building out infrastructure to meet AI-driven demand is set to rise to $220 billion for this year.

Total sales for Amazon as a whole rose 20% year-on-year to $200.6 billion, compared with $167.7 billion. Net income increased to $62.6 billion from $18.2 billion. AWS operating income was $16.6 billion, compared with $10.2 billion in second quarter 2025.

AWS is “booming”, according to Amazon CEO Andy Jassy:

AWS is now $169 billion annualized revenue run rate business, which for perspective, would place it 24th in the Fortune 500 list if it was a stand-alone company. Our chips business now has an annual revenue run rate of over $25 billion, growing triple-digit percentages year-over-year. Our AI revenue run rate climbed significantly quarter-over-quarter and is now...

Copyright of this story solely belongs to diginomica.com. To see the full text click HERE

Read more