In June 22, 2023, Amazon Web Services CEO Adam Selipsky delivered a keynote speech at the Bloomberg Technology Summit in San Francisco.
Photo by David Paul Morris | Bloomberg | Getty Images
Amazon announced on Thursday that its cloud unit revenue grew by 12% in the second quarter, surpassing analysts’ expectations.
The company’s revenue for the quarter reached $22.1 billion, beating the analyst consensus of $21.79 billion.
Amazon Web Services contributed 70% of Amazon’s $7.7 billion operating profit, solidifying its position as the leader in the cloud infrastructure market with a 40% share in 2022, as reported by technology industry researcher Gartner last month.
Although AWS operating income decreased by 5% compared to the previous year, it still exceeded the StreetAccount consensus of $5.24 billion.
Economic concerns have led corporate leaders to reevaluate their cloud infrastructure usage and seek cost-saving opportunities, impacting AWS’s operating income for the past three consecutive quarters.
Microsoft executives also anticipate customers optimizing their existing workloads on Azure in the third quarter, as companies aim to save money.
In the second quarter, AWS introduced Bedrock, a service enabling the deployment of generative artificial intelligence models that can create impressive text and images based on user input. Additionally, AWS announced a $100 million investment in the establishment of a Generative AI Innovation Center to facilitate collaboration between customers and experts.
To capitalize on the growing demand for generative AI following the success of OpenAI’s ChatGPT chatbot, both Google and Microsoft are swiftly entering the market. Microsoft’s Azure OpenAI Service was made available in January, several months ahead of the Bedrock announcement.
AWS CEO Adam Selipsky highlighted the nascent nature of the generative AI competition, stating that the “race” has just begun during an interview with CNBC in June.
Correction: A previous version of this story mistakenly identified a number as revenue instead of operating income.
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