Amazon's AWS cloud revenue jumped 28% year-over-year in Q1, while custom chip business crossed $20 billion annualized run rate

AWS revenue hit $37.6 billion in Q1, up 28% year-over-year, marking the fastest growth in 15 quarters. The segment's operating income reached $14.2 billion—about 59% of Amazon's total operating profit despite accounting for just 21% of total sales.

Amazon's custom silicon operation (combining Trainium, Graviton, and Nitro chips) hit a $20 billion annualized run rate with sequential growth of nearly 40%. CEO Andy Jassy stated that if this chip business operated as a standalone company selling to AWS and other customers, it would have an annual revenue run rate of $50 billion, positioning it among the top three data center chip businesses globally.

AWS cloud unit AI-related revenue alone is running at more than $15 billion annualized, and the segment's backlog reached $364 billion at quarter-end, excluding a recently announced Anthropic agreement valued at more than $100 billion.