Amazon is seeing rapid growth in its technology business, with CEO Andy Jassy revealing that its chip division has now crossed an annual revenue run rate of $20 billion.
The milestone reflects how quickly demand for artificial intelligence (AI) is rising. Companies across industries are increasingly relying on cloud services and advanced computing power, which has boosted Amazon’s custom chip and infrastructure business.
A major part of this growth is being driven by Amazon Web Services, the company’s cloud arm. Its AI-related offerings are gaining traction as businesses look to build and run AI models more efficiently.
Amazon is also focusing on developing its own chips to reduce costs and improve performance. These in-house chips are designed to handle complex AI workloads and are becoming a key part of the company’s long-term strategy.
To support this expansion, Amazon plans to continue investing heavily in data centres and technology infrastructure. While the scale of spending is significant, the company maintains that it is necessary to keep up with growing demand and stay competitive in the AI space.
The announcement signals Amazon’s intent to strengthen its position against other global tech companies investing in similar technologies. It also highlights a shift in the company’s business model, with AI and cloud services playing a bigger role than ever before.
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