AI push sees AWS results hit new high as cloud demand soars

Amazon revenue is up 11%, with AWS leading the charge

News By Craig Hale published 1 November 2024

Amazon has reported an 11% growth in revenue in its latest quarterly results as profits continue to soar for the ecommerce and cloud giant, which is teetering towards a $2 trillion valuation.

The strong growth is largely down to the company's cloud computing succes, with AWS reporting a 19% year-over-year growth in revenue.

At $27.5 billion, Amazon Web Services’ third-quarter revenue equates to nearly a fifth (17.3%) of the company’s entire revenue.

AWS pushes Amazon revenue

Operating income for AWS reached a new milestone of $10.45 billion, accounting for more than three-fifths of the overall company’s profit, with an operating margin of 38.1%, the highest in a decade.

In the same period, Google Cloud revenues increased 35%, marking much healthier growth than that of Amazon’s, however Google’s cloud division revenue is only $11.4 billion – less than half of AWS’.

Since Amazon’s previous earnings call, AWS has launched a series of new genAI products, including its Rufus shopping assistant in Canada, France, Germany, India, Italy, Spain and the UK; AI Shopping Guides; Project Amelia for sellers; and video generation and live image capabilities for advertisers.

It also added Anthropic’s upgraded Claude 3.5 Sonnet, Meta’s Llama 3.2, Mistral Large 2, and multiple Stability AI models to Bedrock and signed agreements with global companies like Capital One, T-Mobile and Toyota.

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