AWS exceeds Wall Street’s expectations as demand for cloud infra remains high

AWS exceeds Wall Street’s expectations as demand for cloud infra remains high

Amazon’s cloud infrastructure service, Amazon Web Services (AWS), is on observe to file its strongest yr of progress in three years, fueled by the AI business’s unprecedented demand for computing energy.

AWS is rising 20% year-over-year and ended the third quarter with $33.1 billion in sales by way of the first 9 months of the yr, Amazon announced in its third-quarter earnings release on Thursday. The enterprise phase’s working earnings elevated to $11.4 billion in Q3, up from $10.4 billion at the same point in 2024.

“AWS is growing at a pace we haven’t seen since 2022, re-accelerating to 20.2% YoY,” Andy Jassy, the president and CEO of Amazon, said in the company’s earnings announcement. “We continue to see strong demand in AI and core infrastructure, and we’ve been focused on accelerating capacity — adding more than 3.8 gigawatts in the past 12 months.”

AWS launched an infrastructure area in New Zealand during the quarter and has three more areas in the pipeline.

The cloud infrastructure supplier also secured a number of new offers in Q3 across quite a lot of industries, including a few notable names in the AI market. In July, AWS partnered with Perplexity to launch the AI browser company’s enterprise product. AWS also partnered with Cursor during the third quarter.

The intense infrastructure calls for of AI have also been a boon to AWS’s opponents. OpenAI and Oracle allegedly inked a large $300 billion cloud compute deal in September that will start in 2027. The pair also made a deal for OpenAI to pay Oracle $30 billion a yr for data heart companies. Last week, Google and Anthropic announced a cloud deal price tens of billions of {dollars}.

These enormous offers come despite skepticism of how a lot cloud infrastructure will really be wanted in the future and if the business is heading into bubble territory. However, it does is smart for cloud corporations like AWS to make the most of a market the place prospects are keen to pay big sums for their companies.

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“You’re going to see us continue to be very aggressive in investing capacity because we see the demand,” Jassy said about investing in AI infrastructure. “As fast as we’re adding capacity right now, we’re monetizing it.”

This news comes two days after Amazon announced it was slashing 14,000 company jobs, because it seems to speculate more in its AI strategy.

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