Amazon Web Services has crossed the $200 billion annual revenue run rate for the first time, powered by surging demand for AI computing infrastructure.
The milestone was disclosed in Amazon's Q1 2026 earnings report, which showed AWS growing 29% year-on-year — a significant acceleration from the 13% growth rate recorded in early 2024.
AI workloads now account for an estimated 35% of AWS revenue, up from 12% a year ago. This includes AI model training, inference hosting, and the rapidly growing category of AI agent deployment.
Amazon CEO Andy Jassy credited the growth to 'the most significant technology platform shift since the cloud itself.' He announced plans to invest $80 billion in AI infrastructure in 2026, with the majority directed toward AWS data centre expansion.
The competitive landscape remains intense. Microsoft Azure and Google Cloud are both growing faster in AI-specific workloads, but AWS maintains its overall cloud market share lead at approximately 31%.