Amazon Says Generative AI Is Now A 'Multibillion-Dollar' Revenue Run Rate Business: 'Strong Demand Signals, Longer Deals, Larger Commitments' To Fuel Capex Growth
Portfolio Pulse from Rounak Jain
Amazon.com Inc. announced its generative AI business within AWS has reached a 'multibillion-dollar' revenue run rate, as revealed during the Q1 2024 earnings call. The company's overall revenue grew by 13%, with AWS revenue up 17% year-on-year. The strong demand for generative AI is expected to further fuel capital expenditure growth, with Amazon spending $14 billion in capex in Q1 2024. This growth comes after Amazon reported strong Q1 2024 earnings, with AWS hitting a $100 billion annual run rate.
May 01, 2024 | 10:16 am
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Amazon's generative AI business within AWS has achieved a 'multibillion-dollar' revenue run rate, contributing to AWS's 17% revenue growth year-on-year and overall company revenue growth of 13% in Q1 2024.
The announcement of Amazon's generative AI business reaching a 'multibillion-dollar' revenue run rate signifies a strong growth trajectory for AWS, which is already outpacing the overall company growth. This, combined with the strong demand signals and increased capital expenditure in AI, suggests a positive outlook for Amazon's stock in the short term. The fact that AWS's revenue is higher than that of 466 companies in the S&P 500 index further underscores the segment's significance to Amazon's financial health.
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