Amazon Web Services (AWS), the cloud computing arm of e-commerce giant Amazon, announced on Thursday that it recorded $29.3 billion in cloud revenue for Q1 2025, reflecting a 17% year-over-year increase.
While this growth is notable, it is slightly lower than the 18.9% growth AWS reported in Q4 2024.
During the earnings call, Andy Jassy, CEO of Amazon, commented:
“Before this generation of AI, we thought AWS had the chance to ultimately be a multi hundred billion dollar revenue run rate business. We now think it could be even larger.”
Meanwhile, Alphabet, the parent company of Google, reported that Google Cloud generated $12.3 billion in revenue for the same quarter, marking a 28% year-over-year growth.
On the other hand, Microsoft reported $26.8 billion in revenue from its Intelligent Cloud segment in Q1 2025, a 21% increase, which included a 22% rise in server products and cloud services revenue, primarily driven by 33% growth in Azure and other cloud services.
As part of its strategy to strengthen its position in artificial intelligence, AWS expanded its AI portfolio in Q1 2025 with several major releases under the Amazon Nova family, including:
- Nova Sonic: A speech-to-speech foundation model designed for building human-like voice agents.
- Nova Act SDK: A tool that enables intelligent agents to take browser-based actions.
- Nova Premier: A multimodal model capable of handling complex tasks such as coding and video comprehension.
In addition, AWS added new third-party foundation models to its Bedrock platform, further strengthening its offering for developers. The new additions include:
- Claude 3.7 Sonnet from Anthropic
- R1 from DeepSeek
- Llama 4 from Meta
- Pixtral Large from Mistral
Moreover, AWS announced an update to Amazon Q Developer, which now supports multiple global languages including Chinese, Hindi, Spanish, French, Korean, and Portuguese, enabling natural conversations across diverse development environments.
With these enhancements, AWS continues to reinforce its leadership in the cloud and AI sectors, outpacing major competitors and pushing the boundaries of innovation in intelligent infrastructure.
