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Amazon Leans Into AI Infrastructure as AWS Drives Profit

E-commerce anchors revenue, with high-margin cloud plus ads funding an AI-focused buildout.

Overview

  • AWS remains Amazon's most profitable segment, supplying cloud infrastructure that powers many websites and apps.
  • E-commerce still generates the majority of company revenue through a mix of first-party retail and a vast third-party marketplace.
  • Amazon is expanding AI infrastructure on AWS, including data center capacity tailored for AI and machine learning workloads.
  • The company has developed custom AI chips, Trainium and Inferentia, to lower costs and improve efficiency versus general-purpose GPUs.
  • Advertising continues to grow rapidly as an asset-light business that monetizes product placement across Amazon's shopping platform.