AWS grows 39% to $46B as Amazon warns of higher AI capex

· Tech · United States

Amazon Web Services revenue accelerated in the third quarter, growing 39% to $46 billion, up from a 37% growth rate in the prior quarter, while Amazon's ecommerce-dependent segments slowed after a Prime Day change. Amazon otherwise missed expectations, and free cash flow turned negative at $2.4 billion. CEO Andy Jassy said AWS can become a $1 trillion revenue business but that getting there requires continued heavy capital spending, and he sees AI infrastructure spending "meaningfully" higher in 2027 than the $220 billion level. The results underline how cloud and AI capacity, not retail, now drive Amazon's growth story.

Why it matters：The numbers confirm that cloud and AI capacity spending, not consumer retail, is setting the pace for the largest hyperscalers and their suppliers.

Key points

  • AWS revenue reached $46 billion, up 39% year over year.
  • Amazon reported negative free cash flow of $2.4 billion.
  • Jassy expects AI infrastructure spending above $220 billion in 2027.

Sources (original reporting)

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