Amazon Rises as Cloud Computing Leader in AI Arms Race

Amazon's cloud computing business is growing at an incredible rate of 37% year-over-year, making it a force to be reckoned with in the AI arms race. The company's Amazon Web Services (AWS) division accounts for about 28% of the market share and contributes significantly to Amazon's operating profits.

AWS' growth rate is rapidly accelerating, jumping from 20% in Q3 2025 to 37% in Q2 2026. This is due in part to Amazon's massive investments in AI computing infrastructure, with capital expenditures expected to total around $220 billion this year.

CEO Andy Jassy noted during the Q2 conference call that the company doesn't have enough capacity to meet all available demand in 2026 and 2027. There is already demand for capacity in 2028, which is a good sign for Amazon's future growth prospects.