Amazon.com said on Thursday its cloud business's AI revenue run rate was more than $15 billion in the first quarter of 2026, the company's first disclosure of direct financial returns from its artificial intelligence efforts.
The numbers are also "ascending rapidly", Amazon CEO Andy Jassy said in a letter to shareholders, adding that its cloud business as a whole would be growing even faster without the capacity constraints that the tech industry is currently facing.
Jassy also said the annual revenue run rate for Amazon's chips business, which produces its Graviton and Trainium processors, is now over $20 billion, doubling from the $10 billion milestone the company reported earlier this year.
"There’s so much demand for our chips that it’s quite possible we’ll sell racks of them to third parties in the future," Jassy added.
Amazon's disclosure comes as a fresh sign that the company's hefty investments in artificial intelligence infrastructure are now bearing fruit. Jassy has said he expects AI to help cloud unit Amazon Web Services achieve $600 billion in annual sales, double his own prior estimate, Reuters exclusively reported last month.
AWS reported total revenue of $128.7 billion in 2025, up about 20% from the prior year. The division is expected to hit sales of $142 billion this year.
Amazon said in February it would spend about $200 billion in capital expenditures this year, primarily focused on AI development and infrastructure. The steep number spooked investors, but Jassy said on Thursday that much of the spending going towards AWS will be monetized over 2027 and 2028.
"We already have customer commitments for a substantial portion of it," he said.
