Amazon's AI Ambitions Skyrocket with AWS Growth and Anthropic Investment

Amazon's recent earnings report has sparked excitement among investors and analysts alike. The company reported its fastest growth in Amazon Web Services (AWS) in 18 quarters, with a significant increase in cloud business momentum.

AWS now boasts the greatest global market share at 28%, surpassing Microsoft's Azure and Alphabet's Google Cloud. Amazon's AI revenue run rate topped $25 billion in Q2, driven by increased demand for AI computing capacity through its cloud platform.

Several high-profile companies are leveraging AWS to build and run AI applications, including Warner Bros. Discovery (WBD), Snowflake (SNOW), and Moody's (MCO). CEO Andy Jassy attributed the growth to AWS' broad capabilities, security, and operational performance.

Amazon is also investing heavily in its own chips business, designing custom silicon for efficient operation on the AWS platform. The company's Trainium and Inferentia chips have achieved a $25 billion revenue run rate, with several AI startups and larger companies like Uber (UBER) and Pinterest (PINS) adopting them.

Anthropic, the AI startup behind Claude, has become one of Amazon's most valuable assets. With a 21% stake valued at $190.4 billion, Amazon is poised to benefit from any potential IPO or growth in Anthropic's value.