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Amazon Lifts Capex to $125 Billion as AWS Reaccelerates on AI Demand

Strong AI infrastructure orders drive Trainium 2 sellouts, with Project Rainier scaling toward one million chips.

Overview

  • AWS posted $33 billion in Q3 revenue and $11.4 billion in operating income, outpacing the $32.4 billion consensus and marking its fastest growth since 2022.
  • Management raised full-year capital expenditure guidance to $125 billion and signaled further increases to expand AI data centers and robotics capacity.
  • New AI offerings Strands and AgentCore are gaining traction, with the AgentCore developer kit passing one million downloads as enterprises test AI agents.
  • Amazon said Trainium 2 is fully subscribed with 150% sequential revenue growth, Project Rainier has deployed about 500,000 chips on a path to one million by year-end, and Trainium 3 is planned next year.
  • Consumer businesses stayed resilient as North America sales rose 11% to $106.3 billion, international sales rose 14% to $40.89 billion, and advertising revenue climbed 24% to $17.7 billion, while an analyst opinion piece cited an unconfirmed ~$38 billion OpenAI arrangement.