Amazon says its cloud unit could grow more than 40% a year for two years, driven by AI demand. For businesses on cloud tools, that may shape prices and features.
Amazon Web Services, the cloud arm of Amazon, says it could grow more than 40% a year for each of the next two years. The reason is demand for artificial intelligence. AWS chief executive Matt Garman shared the outlook in an interview with Bloomberg Technology's Ed Ludlow.
AWS revenue grew for the sixth quarter in a row. Amazon is now projecting that growth could top 40% year over year in each of the next two years. Garman also said the company wants to "responsibly fund" its AI buildout so it can meet what customers are asking for.
AWS rents out computing power and software over the internet. Businesses use it instead of buying and running their own servers. Many websites, apps and company tools run on services like it, which is why its plans matter beyond Amazon.
Any business that runs on cloud tools could feel the effects. Strong AI demand may shape the prices, capacity and new AI features that providers offer. That includes companies that never plan to build AI themselves but use software that runs on a big cloud.
The material does not say how Amazon plans to fund the buildout, how much it will spend, or whether customer prices will change. A projection is also not a guarantee. It is Amazon's view of what could happen, not a result.
Amazon expects AI demand to push AWS growth above 40% a year, so cloud users should watch for changes in pricing, capacity and AI features.
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