Amazon Web Services CEO Matt Garman speaks at the AWS re:Invent conference in Las Vegas on December 3, 2025.
Noah Berger | AWS | Reuters
Amazon Web Services posted 28% revenue growth in the first quarter, beating analysts’ expectations as the cloud infrastructure leader increased its investment in Anthropic and prepared to work more closely with OpenAI.
Amazon said in its Wednesday earnings call that AWS revenue for the period rose to $37.59 billion from $29.27 billion in the year-ago period. Analyst estimates compiled by Street Account were for $36.64 billion. The division accounted for nearly 21% of the parent company’s total revenue.
AWS remains at the top of the cloud infrastructure market, but it faces increasing competition from Microsoft Azure and Google’s cloud arm, which also partners with major artificial intelligence labs to offer more models and services.
microsoft announced Wednesday that revenue from Azure and other cloud services rose 40%. alphabet It said its revenue from Google Cloud, which includes infrastructure and enterprise productivity apps, grew about 63%.
AWS is an important source of revenue for Amazon. The segment’s operating profit rose about 23% to $14.16 billion, well above the consensus consensus of $12.84 billion.
During the quarter, OpenAI announced it would expand its existing $38 billion AWS commitment by $100 billion over eight years, and Amazon plans to invest $50 billion in OpenAI. Earlier this month, Amazon agreed to invest up to $25 billion in Anthropic, on top of the $8 billion it has poured into AI startups in recent years, as part of an expanded agreement to build out its AI infrastructure.
This week, AWS’ position in AI further strengthened. OpenAI announced on Monday that Microsoft would be losing its position as the sole cloud provider for certain computing jobs, a day after AWS announced that it would make OpenAI models available on its Amazon Bedrock cloud service to build AI agents and applications.
AWS also announced during the quarter that it would offer cloud services based on low-latency silicon from AI chip maker Cerebras, which is aiming to go public.
WATCH: AWS CEO Matt Garman talks about Amazon’s AI investments: There’s not just one winner
