Amazon's cloud services business is generating higher-than-expected revenue. The rapid development of artificial intelligence technologies has been the primary driver. Techcrunch.com reports on this.
The company's CEO, Andy Jassy, noted that expenditures in this sector are also increasing.
Net sales for the Amazon Web Services (AWS) network grew by 28 percent compared to last year, reaching $37.6 billion. This represents the fastest growth rate in the last 15 quarters.
According to Jassy, the success of AWS is linked to its role in providing the artificial intelligence industry with computing power.
The company continues to invest heavily in building cloud infrastructure. Jassy announced that the growth in short-term capital expenditures will persist.
He emphasized that the faster AWS grows, the more short-term expenditures are required.
According to Amazon's report, free cash flow decreased to $1.2 billion. This was primarily caused by $59.3 billion in expenditures for the purchase of property and equipment.
A significant portion of these costs was directed toward artificial intelligence infrastructure.
At the same time, the e-commerce giant's total sales increased by 17 percent compared to last year, totaling $181.5 billion. Sales volume grew by 12 percent in North America and by 19 percent in the rest of the world.
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