AWS Customer Commits Jumped $12B in Q1
- May 19
- 2 min read
AWS posted $29.3B in Q1 revenue, growing 17% YoY, slower vs last quarter. However, the story nobody's talking about is their impressive backlog growth – AWS's commits jumped to $189B, a $12B in just one quarter. Significantly outpacing commits growth of other hyperscalers.
AI Removes AWS's Ceiling of Growth
"Before this generation of AI, we thought AWS had the chance to ultimately be a multi $100 billion revenue run rate business. We now think it could be even larger," highlighted Jassy.
This vision is unfolding given Amazon Web Services (AWS) already operates at a $117B run rate – suggesting AI could potentially multiply AWS's ultimate scale.
AWS Q1 Customer Cloud Commitments hit $189B, growing from $177B just 3 months ago.
Jassy reiterated that AWS's AI business maintains "a multi-billion dollar annual run rate" with "triple-digit percentages year-over-year" growth. Their AI stack spans from silicon to applications, with differentiators including:
Bedrock's open model ecosystem with "a choice of high performing foundation models" including recent additions from Anthropic, Meta, DeepSeek, and Mistral
Trainium2 chips offering "30% to 40% better price performance...versus other GPU-based instances"
Enterprise Cloud Migrations Accelerating Alongside AI
The untapped opportunity remains vast: "more than 85% of the global IT spend is still on premises, so not in the Cloud yet."
What's changing is enterprise mindset.
"What we are seeing now over the last, call it, 16 to 18 months or so, is that enterprises realize they need to do both" AI and cloud migrations, Jassy explained. Companies are piloting AI while simultaneously recognizing they're "dropping the low-hanging fruit if they don't move their infrastructure to the cloud."
For alliance leaders, Jassy noted partner contributions - during enterprise migrations, companies sometimes use SIs alongside AWS professional services.
Strategic Capex Investment
AWS continues aggressive investment with CapEx reaching $24.3B in Q1.
AWS plans "to bring on an increasing amount of capacity in the back half of the year" to meet demand that currently outstrips supply."I think we could be helping more customers and driving more revenue for the business if we had more capacity," Jassy emphasized.
The Alliance & GTM Leader Takeaway
The message is clear: while quarter-to-quarter numbers may fluctuate, the underlying customer commitment growth shows enterprises are doubling down on cloud.
The twin drivers of infrastructure modernization and AI adoption (underscored by all 3 hyperscalers in the last week) are creating unique Cloud GTM opportunities.
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