AWS sees bumper quarter as AI push begins to pay off

Key Takeaways:

– Amazon’s quarterly figures show an 11% increase in net sales year-over-year
– The Amazon Web Services (AWS) division contributes significantly to the company’s success
– AWS revenue reached $23.1 billion in Q3 2023, a 12% increase year-over-year
– AWS attributes its growth to a strategic partnership with Anthropic and new high-status customers
– Operating income for AWS climbed to $7.0 billion, up from $5.4 billion last year
– AWS launched new regions and services to support its growth and better serve customers
– AWS operating expenses increased by 6.6% in Q3 2023
– Amazon’s cloud company did not perform as well as rivals Google Cloud and Microsoft Azure
– Economic uncertainty and a slowdown in cost-cutting measures may have contributed to AWS’s performance.

TechRadar:

It’s that time of the year again when companies across the world begin to announce their quarterly figures, and Amazon’s numbers don’t disappoint – largely thanks to its Amazon Web Services (AWS) cloud division.

Amazon confirmed that total net sales had climbed 11% year-over-year to $143.1 billion in the three months that led up to September 30, 2023, and 13% over the previous three months.

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AI Eclipse TLDR:

Amazon has announced its quarterly figures, revealing that its total net sales climbed 11% year-over-year to $143.1 billion in the three months leading up to September 30, 2023. The success can largely be attributed to its Amazon Web Services (AWS) cloud division, which saw a 12% increase in revenue during the same period. AWS has been successful due to a new strategic partnership with Anthropic to advance generative AI, as well as gaining new high-status customers such as BMW Group, NatWest, and Occidental. The company also launched the AWS Israel Region and a new AWS Local Zone in Phoenix, Arizona, to support its growth. Despite these achievements, AWS did not measure up to its major rivals Google Cloud and Microsoft Azure, both of which saw higher growth rates. Amazon CFO Brian Olsavsky suggested that economic uncertainty and a slowdown in cost-cutting measures may have contributed to this discrepancy.