AWS second quarter earnings report | Wilnesh News

Amazon It said on Thursday that its cloud division’s second-quarter revenue grew 19%, exceeding analysts’ expectations.

The company reported Amazon Web Services revenue of $26.28 billion. Analysts polled by StreetAccount had expected $26.02 billion.

Although Amazon faces stiff competition from Amazon, AWS is generally growing faster than Amazon. Google, Microsoft and OracleAs more businesses move workloads to the cloud and invest more in artificial intelligence.

Amazon said in May that Matt Garman would take over as CEO of AWS, replacing Adam Selipsky, who worked at Andy · Andy Jassy was promoted when he was appointed CEO of Amazon in 2021. EC2 that provides raw computing resources.

While AWS continues to lead the cloud infrastructure market, Microsoft Azure and Google Cloud have been building momentum, in part due to early deployments of artificial intelligence models. On Tuesday, Microsoft said revenue from Azure and other cloud services grew 29% in the quarter, and last week Google said its cloud revenue, which includes cloud infrastructure and Workspace productivity subscriptions, also grew 29%.

The company has begun using cloud services to deploy generative AI models to support technologies such as OpenAI’s ChatGPT chatbot. Similar to other cloud providers, Amazon said it will significantly increase capital expenditures in 2024. Nvidia Graphics processing units (GPUs), used to train and run generative artificial intelligence models, are expected to bring in billions of dollars in revenue.

“The reality right now is that while we’ve invested a lot in artificial intelligence and infrastructure, we want to have more capacity than we have now,” said Andy Jassy, ​​Amazon CEO and former head of AWS. “I mean, we have a lot of demand right now and I think this is going to be a really, really big business for us. “

AWS currently accounts for 18% of its parent company’s total revenue. When it comes to profits, AWS is more important.

Amazon said that AWS quarterly operating revenue was US$9.3 billion, accounting for 63% of the company’s total revenue. Analysts polled by StreetAccount expected AWS operating income of $8.51 billion.