Amazon AWS: AWS revenue hits $26.3bn for Q2 2024

Amazon Web Services (AWS) brought in $26.3 billion in revenue for Q2 2024, an 18.8 percent jump over last year.  However, Amazon still recorded a slower  growth rate than its main rivals, Microsoft Azure and Google Cloud, both of which saw growth of 29 percent in the quarter. 
 

The growth of AWS has slowed in recent years due to a global economic downturn, but  Amazon CEO Andy Jassy  believes things are looking up because customers have "completed the significant majority of their cost optimization efforts and are focused again on new efforts."

He said companies are "spending their energy again on modernizing their infrastructure and moving from on-premise infrastructure to the cloud," and also spending their budgets on Artificial Intelligence (AI) systems.

On AI, Jassy adds that while the company has a strong relationship with Nvidia and has "the broadest selection of Nvidia instances available," it has "heard loud and clear from customers that they relish better price performance," which is why the company is investing in its Trainium and Inferentia custom silicon. He added: "A lot of times, it's hard to get that price performance from existing players unless you decide to optimize yourself for what you're learning from your customers and you push that envelope yourself."

Brian Olsavsky, Amazon SVP and CFO, said: "Looking ahead to the rest of 2024, we expect capital investments to be higher in the second half of the year. The majority of the spend will be to support the growing need for AWS infrastructure as we continue to see strong demand in both generative AI and our non-generative AI workloads."