By Reuters

(Reuters) - Amazon.com said on Thursday its cloud business's AI revenue run rate was more than $15 billion in the ‌first quarter of 2026, the company's first disclosure of direct ‌financial returns from its artificial intelligence efforts.

The numbers are also "ascending rapidly", Amazon CEO Andy ​Jassy said in a letter to shareholders, adding that its cloud business as a whole would be growing even faster without the capacity constraints that the tech industry is currently facing.

Jassy also said the annual revenue ‌run rate for Amazon's ⁠chips business, which produces its Graviton and Trainium processors, is now over $20 billion, doubling from the $10 billion milestone ⁠the company reported earlier this year.

"There’s so much demand for our chips that it’s quite possible we’ll sell racks of them to third parties ​in the ​future," Jassy added.

Amazon's disclosure comes as ​a fresh sign that the ‌company's hefty investments in artificial intelligence infrastructure are now bearing fruit. Jassy has said he expects AI to help cloud unit Amazon Web Services achieve $600 billion in annual sales, double his own prior estimate, Reuters exclusively reported last month.

AWS reported total revenue of $128.7 billion in 2025, up ‌about 20% from the prior year. ​The division is expected to hit sales ​of $142 billion this year.

Amazon said ​in February it would spend about $200 billion in capital ‌expenditures this year, primarily focused ​on AI development and ​infrastructure. The steep number spooked investors, but Jassy said on Thursday that much of the spending going towards AWS will be ​monetized over 2027 ‌and 2028.

"We already have customer commitments for a substantial portion ​of it," he said.

(Reporting by Deborah Sophia in Bengaluru; Editing ​by Jonathan Ananda and Devika Syamnath)

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