Amazon reports $15 billion AI revenue and eyes chip sales expansion

Thursday 09 April 2026 - 13:50

By: Dakir Madiha

Amazon reports $15 billion AI revenue and eyes chip sales expansion

Amazon disclosed for the first time that its artificial intelligence business has reached an annualized revenue of more than $15 billion within its cloud division, marking a key milestone in the company’s effort to monetize its heavy investments in AI infrastructure.

The figure was revealed in the annual letter to shareholders from CEO Andy Jassy, who described the growth as rapid and indicative of strong market demand. The disclosure offers investors a clearer view of how Amazon is converting large-scale capital spending into measurable returns, at a time when scrutiny over AI profitability is intensifying across the tech sector.

The company’s cloud unit, Amazon Web Services, remains central to this expansion. Demand for AI-driven services continues to exceed available capacity, according to Jassy, with Amazon deploying infrastructure as quickly as possible to keep pace. This surge reflects broader industry trends as enterprises accelerate adoption of generative AI tools.

Amazon has committed approximately $200 billion in capital expenditures for 2026, with the majority allocated to expanding its cloud and AI capabilities. The scale of this investment surpasses earlier market expectations and underscores the company’s long-term strategy to dominate AI infrastructure.

Part of this growth is anchored in major partnerships. Amazon recently expanded its relationship with OpenAI through a multibillion-dollar agreement that includes both direct investment and long-term cloud commitments. Under the deal, OpenAI will utilize Amazon’s Trainium chips and infrastructure, reinforcing AWS as a key platform for large-scale AI workloads.

In parallel, Amazon’s in-house semiconductor business is emerging as a major revenue driver. The company reported that its custom chips, including Graviton, Trainium, and Nitro, now generate more than $20 billion in annualized revenue. This represents a sharp increase from previous disclosures and reflects strong adoption across its cloud ecosystem.

Jassy signaled that Amazon may extend this business beyond internal use. The company is considering selling servers powered by its proprietary chips to external customers. Such a move would position Amazon in direct competition with Nvidia, which currently dominates the AI chip market.

AWS continues to post strong financial performance. The division recorded a 24 percent year-on-year revenue increase, reaching $35.6 billion in the fourth quarter of 2025. This marks its fastest growth rate in over three years, despite ongoing capacity constraints affecting the broader industry.

Amazon’s strategy reflects a shift toward greater vertical integration. By designing its own chips and controlling infrastructure deployment, the company aims to reduce reliance on third-party suppliers and improve cost efficiency.

The latest figures confirm that artificial intelligence is transitioning from a long-term investment theme into a significant revenue stream. As competition intensifies among cloud providers, Amazon is positioning itself to capture a larger share of the expanding AI market.