Amazon AI Business Surpasses $25 Billion Run Rate Amid Rapid Growth

Amazon's AI business has surpassed $25 billion in annual revenue run rate, growing at triple-digit percentages year over year. This milestone is part of AWS' overall growth, which reached $42.2 billion last quarter, its fastest pace in 18 quarters.

AWS operating income increased to $16.6 billion, up about 64% year over year, expanding the segment's operating margin from about 33% to 39%. The company's backlog of contracted work also reached $496 billion in the quarter.

Assuming the AI business doubles twice more by 2031, it would reach around $100 billion. The rest of AWS could grow between $250 billion and $290 billion, making the segment a possible $350 billion to $390 billion business by then.