In a remarkable show of strength driven by artificial intelligence, Amazon's cloud segment has rocketed to its fastest pace in over three years. The company reported a powerful 20% revenue jump for Amazon Web Services (AWS), surpassing expectations and signaling a resurgence for the tech giant after a year of investor uncertainty about its place in the modern AI arms race.
Amazon’s quarterly update revealed that AWS notched $33 billion in revenue for Q3 2025, blowing past analyst forecasts and easing lingering concerns that the company might be losing ground to rivals Microsoft Azure and Google Cloud. By comparison, Google’s cloud revenue hit $15.16 billion and Microsoft Azure’s topped 40% growth, but AWS remains the world's biggest cloud provider—its scale unmatched.
Much of this momentum is the direct result of a worldwide AI boom now shaking up nearly every major industry. Businesses large and small are pouring record investments into AI model building, demanding immense computing power, storage, and data-handling capacity. This hunger for cloud resources is pushing AWS to expand at a scale rarely seen in tech. In the last year alone, Amazon added 3.8 gigawatts of new data center capacity, more than any global cloud competitor.
Alongside its infrastructure growth, Amazon has leaned heavily into developing its own AI technologies. A headline development this quarter is the deployment of the new Trainium2 chip inside Project Rainier—a colossal data center cluster meant to dramatically accelerate training of leading-edge AI models, including those created by Anthropic, the team behind renowned Claude language models. This move comes at a time when major peers such as Google and Meta are also striking cloud deals worth billions and eyeing similar AI model partnerships.
Amazon's AI push is not limited to the cloud. The company is introducing smart agents for e-commerce, including the generative AI assistant Rufus, which has already reached hundreds of millions of shoppers. Likewise, Amazon subsidiary Zoox is extending its robotaxi trials, showcasing how machine learning is shaping transportation innovation.
The recent earnings success didn’t just fuel optimism—it triggered a market frenzy: Amazon shares soared by nearly 12% in premarket trading, drawing a sharp contrast to months of lackluster performance compared to its "Magnificent Seven" tech peers. For many market watchers, this leap proved that AWS’s renewed growth is the real engine behind Amazon’s resurgence. The performance also reportedly added over $330 billion to the company's market cap during after-hours action.
Despite caution about the competitive landscape, especially as Microsoft and Google continue to report even higher cloud growth rates, Amazon’s numbers show that it has regained key momentum. Analysts highlighted the renewed interest from enterprise customers, who are accelerating their shift to cloud services for everything from generative AI to online commerce, logistics, and healthcare data analytics.
Globally, Amazon is doubling down on strategic investments. The company announced over $40 billion in new cloud and AI infrastructure spending across 14 APEC countries by 2028, with these investments expected to generate significant economic benefits in both the United States and abroad, creating technology jobs and spurring digital transformation.
While AWS forms only about 15% of Amazon’s total revenue, its share of profits is far higher, thanks to the premium that major clients pay for reliable, high-performance AI and computing services. The cloud division’s performance is now being counted on to help offset softness in Amazon’s consumer business, which faces ongoing demand volatility and stiff e-commerce competition.
The broader picture remains dynamic. Amazon is not just matching trends but setting them—launching new tools on the Bedrock platform that let developers build and deploy their own AI applications, integrating the latest foundation models from a spectrum of leading labs, and offering customers enhanced server options for even the most complex AI use cases.
With holiday season demand for cloud scaling up, Amazon is projecting fourth-quarter sales of as much as $213 billion, while ramping up rural same-day delivery services and expanding its presence in grocery and streaming. The underlying current in all these moves is clear: a belief that artificial intelligence will shape digital infrastructure for years to come—and that AWS, for now, will remain at its heart.
