Amazon has revealed that the artificial intelligence (AI) segment of its cloud business reached a revenue run rate of over $15 billion in the first quarter of 2026. This marks the company’s first disclosure of direct financial returns from its extensive AI investments.
In a letter to shareholders on Thursday, Amazon CEO Andy Jassy noted that these figures are "ascending rapidly." He added that the broader cloud business could be growing even faster if not for the hardware capacity constraints currently affecting the global tech industry.
Jassy also highlighted massive growth in Amazon’s custom semiconductor business, which produces Graviton and Trainium processors. The unit's annual revenue run rate has now surpassed $20 billion, doubling the $10 billion milestone reported just 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 stated.
These new disclosures strongly indicate that Amazon’s heavy investments in AI infrastructure are yielding tangible results. Jassy recently projected that AI could eventually help Amazon Web Services (AWS) reach $600 billion in annual sales.
Last year, AWS reported a total revenue of $128.7 billion, a 20% increase from the previous year. The division is currently projected to hit $142 billion in sales in 2026.
While Amazon spooked some investors in February by announcing a massive $200 billion capital expenditure plan for 2026—primarily focused on AI infrastructure—Jassy offered reassurance on Thursday. He explained that much of this AWS spending will be heavily monetized in 2027 and 2028.
"We already have customer commitments for a substantial portion of it," he confirmed.
