In the third quarter of 2025, Amazon achieved its strongest growth in its AWS cloud division since 2022. Amazon Web Services’ revenue grew by 20 percent to $33 billion. This exceeded Wall Street’s expectations, which had predicted $32.4 billion.
Amazon’s total revenue rose thirteen percent to $180.2 billion in the third quarter. Net income rose to $21.2 billion, or $1.95 per share. The figures exceeded analysts’ expectations, leading to a share price increase of approximately nine percent in after-hours trading.
According to Amazon, AWS’s growth is mainly driven by increasing demand for computing power for artificial intelligence. Companies are increasingly using cloud platforms to train large AI models and run generative applications. Amazon expanded its data center capacity by 3.8 gigawatts last year, an increase greater than that of any other cloud provider. At the same time, the company is investing heavily in its own AI hardware, such as the Trainium2 chip, and in collaborations with model developers such as Anthropic.
The recent launch of Project Rainier, a cluster with nearly half a million Trainium2 chips, is intended to accelerate the training of Anthropic’s latest Claude models. AWS also introduced new server types with Nvidia and Intel chips for complex AI tasks. New foundation models from OpenAI, DeepSeek, Qwen, and others were added to the Bedrock platform. The company also released tools that enable developers to build AI agents and business applications.
Although Amazon’s AI activities are mainly concentrated within AWS, the company is also expanding its use of AI across other areas. The shopping assistant Rufus, based on generative AI, is now used by hundreds of millions of customers. Furthermore, subsidiary Zoox is expanding its robotaxi service, with new tests in Washington D.C.
Major reorganization at Amazon
Despite its strong figures, Amazon is facing structural challenges. The company announced this week that it would cut 14,000 office jobs as part of a broader reorganization that, according to Jassy, is intended to remain agile and operate more like a startup. He denied that the layoffs were directly caused by AI automation, but admitted earlier this year that technological advances will change the workforce in the long term.
With a market capitalization of approximately $2.4 trillion, Amazon remains one of the dominant players in the technology sector. AWS’s strong quarterly growth shows that, despite competition from Microsoft and Google, the company is maintaining its position in the global cloud market, with artificial intelligence playing an increasingly central role.