Amazon's AI Business Surpasses $25 Billion, Posing Significant Growth Potential

Amazon's AI business, part of its Amazon Web Services (AWS) segment, has surpassed $25 billion in annual revenue run rate. According to the company's recent earnings report, this business is growing at triple-digit percentages year over year.

AWS as a whole experienced 37% year-over-year growth to reach $42.2 billion last quarter, its fastest growth in 18 quarters. The segment's operating income reached $16.6 billion for the quarter, up about 64% year over year from $10.2 billion.

CEO Andy Jassy stated that AWS's backlog of contracted work has grown to $496 billion, which is close to three times a full year of AWS revenue.

If the AI business doubles just twice more by 2031, it would reach about $100 billion in annual revenue. The rest of AWS could grow from its current run rate of $144 billion to between $250 billion and $290 billion by 2031.