Amazon AWS accelerates revenue growth as artificial intelligence advances

AWS, Amazon's cloud division, posted a 13 per cent year-on-year acceleration in revenue growth in the fourth quarter of 2023. This is due to the active adoption of new services based on artificial intelligence technologies by corporate customers.

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AWS revenue in the quarter was $24.20 billion, which was fully in line with the forecasts of analysts surveyed by StreetAccount. The revenue growth rate accelerated from 12% to 13% over the past three months.

Also in the fourth quarter, AWS released the Q chatbot and Trainium 2 processor for AI needs. In addition, with the weakening economy, many companies are trying to optimise cloud spending, which is also reflected in AWS' results.

According to Amazon CFO Brian Olsavsky, the company expects further acceleration in AWS revenue growth in 2024. This will be fuelled by both major new customer contracts and the renewal of existing agreements for longer terms.

However, Amazon's main cloud competitors are growing faster so far, with Azure and other Microsoft products growing revenue by 30 per cent and Google Cloud by 26 per cent. But in terms of operating profit, AWS is well ahead of expectations - $7.17bn versus a projected $6.93bn.

AWS now accounts for 14% of Amazon's total revenue.

Source: CNBC