AWS CEO Projects Cloud Revenue Growth Above 40% Driven by Enterprise AI

Amazon Web Services CEO Matt Garman projects cloud revenue will expand by more than 40% year-over-year in each of the next two years, driven by enterprise artificial intelligence adoption. AWS currently operates at a $184 billion annualized revenue run rate with 39% growth and high-30% operating margins. The unit's committed contracted backlog has reached $580 billion. Following third-quarter earnings, Garman cited surging demand for proprietary Trainium chips and Nvidia GPUs, noting AWS installs an AI chip every 14 seconds. To support capital expenditures, Amazon arranged about $80 billion in supplier financing starting next year.