Amazon reports increased 1Q profits and net sales fueled by cloud computing demand
Amazon reported a strong increase in profits and net sales in its fiscal first quarter, driven by 28% growth in its cloud computing unit, Amazon Web Services. The company's cloud computing sales growth is the fastest in 15 quarters, and it has signed major deals with OpenAI, Anthropic, and Meta.
Amazon's profits and net sales surged in the first quarter, fueled by its cloud computing unit. Amazon Web Services sales grew 28%, the fastest increase in 15 quarters. The company has signed major deals with OpenAI, Anthropic, and Meta, with Anthropic committing over $100 billion to Amazon's AWS cloud platform over the next 10 years. Amazon's CEO, Andy Jassy, defended the company's $200 billion investment in artificial intelligence, robots, semiconductors, and satellites, saying it expects long-term returns. Amazon is experiencing higher tariff costs and rising shipping costs due to the Iran war, and has imposed a 3.5% fuel and logistics surcharge on some third-party sellers. The company's cloud computing growth is a significant contributor to its overall sales.
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