"How often do you have an opportunity that's $123 billion of annual revenue run rate where you say it's still early. It's a very unusual opportunity that we're very bullish about." - Andy Jassy, Amazon CEO

$195B in Customer Cloud Commits

Amazon Web Services (AWS) grew 17.5% YoY in Q2 despite being supply-constrained. "We have more demand than we have capacity right now," Jassy revealed, with power being the primary bottleneck over chips.

This constraint will persist "several quarters" as AWS poured $31.4B in Q2 capex to catch up.

Enterprises keep signing commitments, growing AWS backlog to $195B in Q2. That's customer obligations that can fund both AWS services and third-party software via its marketplace.

Will Data Gravity and Cost Win in AI?

When asked if AWS is keeping pace with AI innovations and competition, Jassy highlighted structural advantages.

"It is so early right now in AI," he emphasized. While training costs dominate today, "80 to 90% of the cost will be in inference" at scale. "You only train periodically, but you're spitting out predictions and inferences all the time."

AI inference will become "just another building block like compute, storage and database," i.e. customers will want applications running cost effectively and "close to where their other applications are running, where their data is."

With more enterprise applications and data on AWS than anywhere else, this creates natural gravity.

The Great Infrastructure Flip

"85 to 90% of worldwide IT spend is still on premises versus in the cloud. In the next 10 to 15 years, that equation is going to flip, further accelerated by company's excitement for leveraging AI."- according to Amazon CEO.

In this shift, AWS is positioning across the entire AI stack, from custom silicon (Trainium powering Anthropic's Claude 4) to application-layer tools like Bedrock AgentCore for enterprise agent deployment.

AWS is betting on making AI accessible

The earnings highlighted AWS Marketplace's evolution into an AI distribution hub for agent discovery and deployment. Its new "AI Agents and Tools" category features 800+ pre-built solutions from partners like Anthropic, IBM, and Salesforce.

Massive CapEx Investments

Andy Jassy highlighted AWS's significant cloud market lead with the nearest competitor being 65% of its size.

With Q2's $31.4B capex "reasonably representative" for the H2 2025, AWS is committing $120B+ annually to maintain infrastructure and AI leadership

Alliance Imperative

The combination of strong growth, ecosystem size and massive committed spend creates both opportunity and urgency to position your solutions in AWS ecosystem—whether through marketplace, co-sell, or technical integration.

What's your strategy?