Amazon Web Services has achieved an annualized revenue run rate exceeding $15 billion from its AI services in the first quarter of 2026. CEO Andy Jassy disclosed the figure for the first time in the company’s annual shareholder letter released this week, marking a significant milestone for the cloud unit.
The AI revenue, which represents roughly 10% of AWS’s overall $142 billion run rate, underscores surging demand for cloud-based AI training and inference capabilities. Jassy emphasized the rapid growth amid strong customer adoption, as detailed in the letter.
This announcement comes alongside justification for Amazon’s aggressive $200 billion capital expenditure plan for 2026, primarily targeted at AI infrastructure such as data centers and custom chips. Much of the spending is already committed by customers, with monetization expected in 2027 and 2028.
AWS’s custom chips, including Trainium and Graviton, have surpassed a $20 billion annual run rate, more than doubling year-over-year. The unit’s overall revenue grew 12% to $24.6 billion in the last quarter, building on $129 billion for full-year 2025.
Investors responded positively, with Amazon shares climbing 4-5% following the release. The disclosure aligns AWS more closely with peers like Microsoft in transparently reporting AI-driven growth, bolstering confidence in its cloud dominance.
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