$1 Trillion Cloud: AWS Revenue Growth Accelerates with AI Boom

Amazon's AWS division has been growing rapidly, and its revenue rose 37% year-over-year last quarter. The company now believes that its annual revenue could eventually surpass $1 trillion, according to CEO Andy Jassy. This estimate is based on the assumption that AWS will average 20% revenue growth during the next decade.

AWS is the largest cloud provider in the world by revenue and has a significant partnership with Anthropic, an AI lab that plans to spend tens of billions on cloud computing. The company's business model has been supercharged by demand for artificial intelligence, which has accelerated AWS' revenue growth.

If AWS reaches $1 trillion in sales, it could earn between $300 billion and $400 billion in operating earnings, depending on its profit margins. This would be a significant increase from the company's current operating earnings of $98 billion. Amazon's total market cap is currently around $2.8 trillion.