April 9 (Reuters) – Amazon.com said this Thursday that the annualized revenue of its artificial intelligence cloud division exceeded US$15 billion in the first quarter of 2026, this being the company’s first disclosure of the direct financial return from its AI efforts.
The numbers are also “increasing rapidly,” Amazon Chief Executive Andy Jassy said in a letter to shareholders, adding that its cloud business as a whole would grow faster faster without the capacity constraints the technology sector currently faces.
Jassy added that annual revenue generated by Amazon’s chip division, which produces Graviton and Trainium processors, now exceeds $20 billion, double the $10 billion the company reported earlier this year.
“There is so much demand for our chips that it is quite possible that in the future we will sell large quantities of them to third parties,” Jassy added.
Amazon’s disclosure comes as yet another sign that the company’s huge investments in artificial intelligence infrastructure are finally bearing fruit. Jassy said he expects AI to help cloud unit Amazon Web Services (AWS) reach $600 billion in annual sales, double his own previous estimate, as Reuters exclusively reported last month.
AWS reported total revenue of $128.7 billion in 2025, an increase of about 20% from the previous year. The division is expected to reach sales of US$142 billion this year.
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In February, Amazon announced investments of around US$200 billion this year, mainly in AI and infrastructure development. The significant value scared investors, but Jassy stated this Thursday that a large part of the investments destined for AWS will be monetized throughout 2027 and 2028.
“We already have customer commitments for a substantial portion of this,” he said.
