Amazon's AWS Q1 revenue jumps 28%, backlog hits $364B, boosting AI-driven growth outlook.

Amazon.com, Inc. reported strong Q1 results with AWS revenue growing 28% year-over-year, highlighting its success in monetizing increased AI spending. The AWS backlog surged nearly 50% quarter-over-quarter to $364 billion, indicating strong demand and expected revenue growth over the next two years. Integration of OpenAI models is expected to reduce Azure's competitive edge, supporting AWS's AI services like Bedrock and hardware adoption, which should enhance customer retention and improve AI profitability. This positions Amazon for sustained long-term returns and reduces risks associated with capital expenditures.