Improved AWS margins are a key factor in its success, boosting by 800 basis points. AWS generates 65.7% of overall group operating income, although only 17% of Amazon revenue comes from AWS.
CEO Andy Jassy emphasizes the importance of considering the base numbers when evaluating growth rates. Despite a slower growth rate, AWS still achieves significant dollar growth due to its large infrastructure cloud computing base.
Jassy foresees a prosperous future for AWS, driven by the rise of generative AI workloads that are expected to be predominantly cloud-based. Amazon's capex will increase to support AWS growth, particularly in generative AI initiatives.
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