Amazon's AWS Customer Backlog Hits $496 Billion
Amazon (AMZN) continues to impress investors with its massive scale and diverse business segments, but one key figure from its most recent quarter stands out. As of June 30, Amazon Web Services (AWS) reported a customer backlog of $496 billion, a significant jump from $364 billion just three months earlier and a triple-digit percentage increase from the same period last year. This surge highlights the growing demand for cloud computing services, particularly driven by artificial intelligence (AI) advancements.
The massive backlog explains why Amazon and other hyperscalers are ramping up capital expenditures, expected to reach $220 billion this year. AWS is experiencing a revenue acceleration, marking the fastest growth in 18 quarters. Chief Financial Officer Brian Olsavsky noted on the second-quarter earnings call that customers are accelerating their transition to the cloud to fully benefit from AI.
However, there are risks to consider. Earlier in 2026, Anthropic and OpenAI each signed $100 billion multi-year deals with AWS. While these AI labs are generating substantial revenue, their spending plans may outpace their income, posing a potential risk for Amazon. Investors should weigh both the opportunities and challenges presented by these high-profile partnerships.