Amazon maintains steady growth, even after the outage in its cloud platform.
Amazon has shared its first financial results since the major AWS outage affected millions of people earlier this month. Despite that painful reminder of how dependent the world is on its cloud platform, Amazon Web Services continues to grow strongly.
Record Revenue for AWS
In the third quarter, AWS revenue increased by 20 percent year-over-year, reaching $33 billion. According to CEO Andy Jassy, the cloud division is “growing at a pace we haven’t seen since 2022”. The strong figures led to a stock price increase of approximately 9 percent.
Although competitors like Microsoft Azure and Google Cloud are eyeing market leadership, AWS remains a critical component of the internet. The recent outage, which took down hospital records and banking services among others, made this clear once again.
AI Drives Growth
Amazon is trying to capitalize more aggressively on the AI hype. The company is integrating new generative tools into its platforms and will expand its Zoox robotaxi service to Washington DC later this year. AI should help Amazon innovate faster and keep up with competitors who have taken the lead.
Meanwhile, Amazon announced another round of major layoffs this week: 14,000 jobs will be eliminated, and that number could still increase. Jassy denies that these layoffs are due to AI, while according to