Amazon beats expectations with cloud and AI growth
Amazon reported strong second-quarter growth, with revenue rising 20% to over $200 billion, driven largely by its cloud and AI divisions. CEO Andy Jassy emphasized the company's commitment to developing its own AI models while maintaining partnerships with other AI firms.
Why it matters
Amazon's financial performance and its massive investment in AI infrastructure are key indicators of the broader tech sector's health and the competitive landscape of cloud computing.
Amazon beat analysts' expectations on Thursday when it reported growth in overall revenue and sales, particularly in its cloud, artificial intelligence and chips divisions.
Its revenue increased 20 percent to more than $200 billion in the second quarter, compared to last year, with its cloud business, Amazon Web Services, jumping 37 percent to reach $42.2 billion.
The company meanwhile said that two of its AI-related divisions grew by "triple-digit percentages”; its AI cloud and chips businesses each "exceeded" $25 billion annual revenue run rates, a measure of recurring sales.
Amazon stock jumped by more than 7 percent after hours.
The company is working to show that its heavy investments in artificial intelligence, alongside the rest of the tech sector, are paying off.
AWS is "booming," Amazon CEO Andy Jassy said during a call with analysts Thursday afternoon.
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