Amazon’s AI business hits $25 billion run rate, outpacing early AWS

What happened

The numbers behind the milestone In its Q2 2026 report, Amazon disclosed that its AWS AI business and its custom chip business each passed the $25 billion run-rate mark. AWS revenue reached $42.2 billion, up 37% from a year earlier. Amazon Web Services is a cloud computing company based in Seattle.

Amazon's rapid AI growth highlights the strategic importance of AI infrastructure investment, despite financial pressures from rising costs.

23, 2026 Amazon ’s AI business has crossed a $25 billion annualized revenue run rate. It got there in roughly three years.

CEO Andy Jassy told investors on the July 30 earnings call that the unit is growing “several hundred times faster” than AWS did in its early days. A quick translation for anyone allergic to finance terms: a run rate takes current revenue and projects it across a full year.

It is a snapshot of momentum, not a booked annual total. The broader cloud unit also had a strong quarter.

That works out to a $169 billion annualized run rate. It also marks AWS’s fastest growth rate in the last 18 quarters.