Amazon Web Services (AWS), Amazon's cloud computing services segment, is having its strongest growth year since 2022.
In its Q3 financial report released last Thursday (local time), Amazon said coaches' revenue reached $23.1 billion in the first nine months of the year, up 20% year-on-year. Operating profit reached 11.4 billion USD, higher than the 10.4 billion USD in 2024.
Mr. Andy Jassy, CEO of Amazon, commented that coaches are growing at an unprecedented pace in the past three years, driven by strong demand for AI and core infrastructure.
"Over the past 12 months, we have added more than 3.8 gigawatt of computing capacity," said Andy Jassy.
In the last quarter, coaches launched a new Infrastructure Area in New Zealand and are deploying three more regions globally.
The company also signed many major deals, including a partnership with Perplexity to launch the enterprise product of this AI browser company, in a joint alliance with Cursor in the third quarter.
Although AWS is leading, competitors such as Google Cloud, Oracle and Microsoft Azure are also stepping up investment.
Notably, OpenAI and Oracle are said to have signed a $300 billion cloud computing deal in September, while Google and Anthropic announced a multi-billion-dollar partnership just a week ago.
The boom in huge deals shows that the demand for AI-powered computing has yet to cool down, despite concerns about the possibility of a bubble forming in the cloud sector.
We will continue to invest heavily in infrastructure as demand is still increasing rapidly. Every time we expand capacity, we generate new revenue, Jassy affirmed.
The news comes just two days after Amazon cut 14,000 jobs to restructure and focus resources on a long-term AI strategy, showing the group's long-term vision in the artificial intelligence era.
