Amazon’s cloud business is surging — and so is its capital spending

Amazon Web Services (AWS) reported a 28% year-over-year revenue increase to $37.6 billion, marking its fastest growth in 15 quarters due to the AI boom. CEO Andy Jassy highlighted that AWS's AI revenue run rate has reached over $15 billion in just three years. To sustain this momentum, Amazon is heavily investing in data centers, chips, and infrastructure. While these capital expenditures have caused a 95% decline in free cash flow compared to the previous year, Jassy emphasized that these are necessary long-term investments that will ultimately generate significant downstream value.

(Source：TechCrunch)