Amazon CEO says cloud business would have grown faster if it had more AI chips, power, and server components

Author: Eugene Kim | Source: DNyuz | Read the full article | Published February 7, 2025

Amazon's CEO, Andy Jassy, recently shared insights about the company's cloud services, specifically Amazon Web Services (AWS). He mentioned that the growth of AWS could have been even more significant if it weren't for certain limitations in their data centers. These limitations stem from challenges in obtaining essential components like AI chips and server parts, as well as the energy needed to run their operations.

During a call with analysts, Jassy highlighted that despite these constraints, AWS still managed to report a 19% increase in sales for the last quarter, totaling $28.8 billion. However, this figure was slightly below what analysts had expected, leading to a drop in Amazon's stock price. Jassy's comments align with similar sentiments expressed by leaders at other tech companies, indicating that many are facing similar supply challenges in meeting the growing demand for AI services.

Looking ahead, Jassy is optimistic that these capacity issues will ease by the latter half of 2025. He emphasized that AWS is making significant investments in infrastructure, forecasting around $105 billion in capital expenditures for 2025, primarily for data centers. This commitment reflects the strong demand for AI services, which Jassy believes represents a major business opportunity for AWS in the future.

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