Amazon’s cloud business is surging — and so is its capital spending

image via TechCrunch

April 30, 2026, 12:14 AM

• •AWS net sales increased 28% year-over-year to $37.6 billion.
• •AWS's AI revenue run rate is over $15 billion.
• •Capital expenditure growth will continue in the near term.
• •Free cash flow decreased to $1.2 billion for the trailing twelve months.

Amazon's cloud business, AWS, experienced its fastest growth in 15 quarters, fueled by the AI boom, with a 28% year-over-year increase in net sales. This growth is attributed to AWS's crucial role in providing compute to the AI industry, leading to significant capital expenditures in infrastructure like data centers and chips. While these investments are impacting free cash flow in the short term, the company anticipates long-term payoffs, mirroring past growth cycles. Overall sales for the e-commerce giant also rose, indicating continued expansion and investment in AI-related infrastructure.

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