AWS Revenue Soars as Amazon Predicts $1 Trillion Cloud Business

Amazon's Andy Jassy predicts that about 85% of global IT spending is currently for on-premise company servers, and this equation will 'flip' in the next 10 to 20 years. This shift is already happening, with AWS revenue hitting $42.2 billion in the second quarter, a 37.6% jump from a year earlier.

Jassy believes that Amazon Web Services (AWS) will be a $1 trillion annual revenue business for us in time, and pointed to the PGA Tour as an example of this trend. The tour has migrated its data infrastructure to AWS, allowing it to layer AI on top and automate tasks such as generating betting profiles and television broadcasts.

AWS' AI business has exceeded a $25 billion annual revenue run rate, with customers spending more on Bedrock in the second quarter than in every prior quarter combined since the service launched in 2023. The tour's use of AWS is not unique, with companies such as healthcare, financial services, and insurance also moving quickly to adopt AI.