Microsoft's and Amazon's Q2 2024 earnings reports

AWS Reaches $100B Run Rate with 17% Growth, AI Boosts Azure by 7%

May 3, 2024, 05:16 PM

Amazon Web Services (AWS) has achieved a significant milestone by reaching a $100 billion annualized revenue run rate, as revealed in Amazon's Q1 2024 earnings call. This growth has been driven by strong demand for both generative and non-generative AI workloads, with customers committing to longer and larger deals. AWS CEO Adam Selipsky discussed the unit's 17% year-over-year revenue growth and its multibillion-dollar AI business, emphasizing AWS's ongoing innovation and long-term strategy to meet customer needs. The overall cloud revenue for the tech giants, including AWS, Microsoft, and Google, has seen a substantial increase, with a reported 21% rise to $76 billion in the latest earnings cycle, largely fueled by heightened AI-driven demand. Notably, AI has contributed 7 percentage points to Microsoft Azure's growth, and 85% or more of global IT spend remains on premises.