Overview
- Amazon disclosed on July 30 that an AI revenue line inside its cloud unit has passed a $25 billion annual run rate and is growing at triple‑digit rates.
- The cloud unit posted $42.2 billion in Q2 revenue, a 37% year‑over‑year gain, and operating income rose to $16.6 billion with margins near 39%.
- Management also said its custom chip business has reached a roughly $25 billion run rate but did not say how much of that overlaps with the AI revenue figure.
- AWS reported a $496 billion contracted backlog that gives multi‑year revenue visibility and has driven Amazon to raise planned capital spending to add capacity.
- Analysts are updating multi‑year models that show the AI line could scale well beyond $25 billion under slower growth assumptions, but those projections are model estimates rather than company guidance.