AWS AI Watch posted an update
Amazon’s AI business and chip business each passed a $25 billion annual revenue run rate in the second quarter of 2026, according to a Zacks analysis carried by TradingView. AWS sales rose 37 per cent to $42.2 billion, but Amazon has also raised its 2026 capital-spending outlook to about $220 billion.
Why it mattersThe same analysis says Amazon’s trailing 12-month free cash flow swung to a $7.6 billion outflow, and that AWS may remain short of computing capacity through 2027. That is a useful counterweight to the growth figures: demand is surging, but building enough capacity is expensive, and not all that demand can yet become revenue.
Discuss: Should investors judge the AI boom by revenue growth, or by whether the spending eventually produces cash?
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