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Amazon’s AWS Gains Momentum in AI Cloud Race
Amazon’s AWS has emerged as a significant player in the AI cloud sector, backed by a backlog of over $200 billion. In Q3 2025, AWS reported revenues of $33 billion, reflecting a 20.2% annual growth, and an operating income of $11.4 billion, with a substantial operating margin of over 34%. AWS holds a 29% share of the global cloud infrastructure market, outpacing Microsoft Azure at 20% and Google Cloud at 13%.
The company has expanded its data center power capacity by more than 3.8 gigawatts in the past year and aims to double this by 2027. Significant developments include the creation of custom silicon chips, Trainium and Inferentia, which offer enhanced price-performance. Amazon anticipates expanding its AI compute cluster to 1 million Trainium2 chips by the end of 2025.
With key AI services like SageMaker and Bedrock, AWS is strategically positioning itself to capitalize on the increasing demand for AI training and inference, despite competition from Microsoft and Google, who have seen faster growth rates in the cloud sector.
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