Matt Garman, CEO of AWS, defended the company’s massive investments in artificial intelligence infrastructure during an appearance on the a16z podcast. AWS plans approximately $220 billion in capital expenditures for 2026, but its largest customer accounts for only a single-digit share of revenue, limiting concentration risk. AWS annual revenue is estimated between $169 billion and $170 billion, representing 37% year-over-year growth, while AI-related revenue run rate exceeded $15 billion in the first quarter of 2026. Amazon Bedrock posted 170% quarter-over-quarter revenue growth during certain periods, and Trainium AI training chip capacity is sold out for the next year. Startups represent between 30% and 40% of AWS revenue, confirming the diversification of the company’s customer base.
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