Amazon Web Services and Google Cloud report strong year-over-year revenue growth amid rising enterprise AI demand.
Amazon and Alphabet posted significant gains in cloud revenue, fueled by expanding artificial intelligence adoption. Amazon Web Services (AWS) sales rose 28% year over year in the first quarter, while Google Cloud revenue surged 63% over the same period.
Both companies are diversifying beyond core businesses, with AWS and Google Cloud leading growth. Amazon’s AI chip segment reached a $20 billion annual revenue run rate, while Alphabet’s Gemini Enterprise saw 40% sequential growth in paid monthly active users. Waymo also hit 500,000 fully autonomous rides weekly.
The rapid expansion highlights AI’s role in driving future revenue streams for tech giants. Google Cloud’s faster growth rate positions it as a key competitor to AWS in the enterprise AI space.