Amazon Web Services (AWS), the cloud computing arm of Amazon.com, continues to demonstrate the transformative impact of artificial intelligence (AI) on its revenue growth.
AWS reported sales of $33 billion, up 20 percent year-over-year, with operating income reaching $11.4 billion for the third quarter ended September 30, 2025.
Amazon’s overall sales grew 13 percent to $180.2 billion, reflecting strong demand across North America and international markets.
Andy Jassy, President and CEO of Amazon, emphasized the role of AI in driving AWS growth, stating that the segment is “growing at a pace we haven’t seen since 2022,” fueled by “strong demand in AI and core infrastructure” and significant capacity expansion of 3.8 gigawatts in the past 12 months.
A major contributor to this growth has been AWS’s AI-focused infrastructure and services. Trainium2, Amazon’s custom AI chip, has seen full subscription and a 150 percent quarter-over-quarter growth, making it a multi-billion-dollar business.
AWS also launched Project Rainier, a massive AI compute cluster with nearly 500,000 Trainium2 chips, powering leading AI models like Anthropic’s Claude. In addition, the introduction of Amazon EC2 P6e-GB200 UltraServers with NVIDIA Grace Blackwell Superchips enables training and deployment of the most advanced AI models.
AWS has also expanded its AI software offerings. New foundation models in Amazon Bedrock, including OpenAI, DeepSeek-V3.1, Qwen3, and Claude variants, are helping businesses integrate AI into their workflows.
The Quick Suite agentic AI app accelerates business operations, enabling employees to complete month-long projects in days, with reported 80 percent time savings on complex tasks and over 90 percent cost savings. AI adoption also extends to Transform, an agent assisting customer migrations to AWS, which has saved 700,000 hours of manual effort to date.
Contact center AI solutions are seeing strong adoption as well. AWS Connect now operates at a $1 billion annualized revenue run rate, processing 12 billion minutes of customer interactions in the past year. AWS also unveiled AgentCore, infrastructure building blocks for secure, scalable agent development, and Nova Multimodal Embeddings, enabling accurate search across text, images, video, and audio.
Infrastructure expansion continues with a new AWS Region in New Zealand and plans for ten more Availability Zones and three additional Regions, supporting global AI deployments. AWS has also signed high-profile agreements with Delta Air Lines, Volkswagen Group, Fox Corporation, Qantas Airways, SAP, lululemon, and numerous other companies, further demonstrating the market demand for AI-driven cloud solutions.
With AI-powered services, custom chips, advanced compute clusters, and an expanding suite of software solutions, AWS is leveraging artificial intelligence to drive substantial revenue growth, strengthen its cloud leadership, and enable businesses worldwide to harness AI at scale.
Rajani Baburajan
