""It's very unusual for business to grow this fast on a base this large. The last time we saw growth at this clip, AWS was roughly half the size. We've never seen a technology grow as rapidly as AI. Amazon is already a leader, and companies continue to choose AWS for AI.""
""To put our growth in perspective, three years after AWS launched, it had a $58 million revenue run rate. [During] the first three years of this AI wave, AWS's AI revenue run rate is over $15 billion - nearly 260 times larger.""
""The faster AWS grows, the more short-term capex we'll spend. AWS has to lay out cash for land, power, buildings, chips, servers, and networking gear, in advance of when we can monetize it.""
""These capital expenditures fund assets like data centers that last more than 30 years or chips, servers, and networking gear that have a useful life for five to six years.""
Amazon's cloud business, AWS, reported a 28% increase in net sales year-over-year, reaching $37.6 billion. This growth is attributed to its significant role in the AI industry. CEO Andy Jassy noted that AWS's current growth rate is unprecedented for such a large base. He compared AWS's current AI revenue run rate of over $15 billion to its initial revenue of $58 million three years after launch. Amazon continues to invest heavily in infrastructure to support AWS, viewing these expenditures as necessary for long-term growth.
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