Amazon CEO Andy Jassy speaks throughout an unveiling occasion in New York on Feb. 26, 2025.
Michael Nagle | Bloomberg | Getty Photos
Amazon’s cloud enterprise grew at a slower tempo than anticipated within the first quarter, a 3rd straight income miss.
Income at Amazon Internet Providers elevated 17% to $29.27 billion, whereas analysts polled by StreetAccount had anticipated $29.42 billion. The expansion slowed from 18.9% in the fourth quarter.
AWS, which accounted for about 19% of its dad or mum firm’s whole income, is the world’s prime supplier of cloud infrastructure. Microsoft, its prime competitor, introduced first-quarter Azure cloud development and steering for the enterprise that exceeded consensus on Wednesday. Google, the No. 3 provider, got here in a contact beneath consensus on cloud income final week.
Cloud computing remains to be displaying wholesome development regardless of alerts elsewhere of a more difficult economic system. Automakers and retailers have begun getting ready for larger prices or decrease demand due to sweeping tariffs on items imported to the U.S. that President Donald Trump introduced in early April.
Amazon stated first-quarter AWS working earnings totaled $11.55 billion, larger than the $10.52 billion StreetAccount consensus. The phase’s working margin of 39.5% was the widest it has been a minimum of since 2014.
Through the quarter, AWS stated it was launching a service for streaming video video games, and forming an agentic synthetic intelligence group.
Capital infrastructures for the quarter got here out to $24.3 billion, up round 74% yr over yr. In February, administration referred to as for roughly $105 billion in 2025 capital spending, a few of which is able to go towards knowledge facilities containing chips that may prepare and run synthetic intelligence fashions from Anthropic and different cloud shoppers.
Amazon CEO and former AWS chief Andy Jassy stated in an April letter to shareholders that the price of AI for patrons will come down over time, due partly to Amazon’s customized chips that signify a substitute for Nvidia graphics processing items.
The AWS AI enterprise has billions in annualized income, Jassy stated on a convention name with analysts.
” I feel we could possibly be serving to extra prospects and driving extra income for the enterprise if we had extra capability,” he stated. “We’ve much more Trainium2 cases and the subsequent technology of Nvidia cases touchdown within the coming months.” Trainium2, introduced in 2023, is Amazon’s next-generation chip for coaching AI fashions.
AWS has diversified away from China for elements prior to now six years, Jassy stated.
