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Generative AI will be worth tens of billions of dollars in revenue over the next several years for AWS, Amazon (NASDAQ:AMZN) CEO Andy Jassey said.
“There’s a lot of growth in front of AWS, I’m very optimistic about it,” Jassey said on the company’s third quarter earnings call on Thursday.
The tech giant reported AWS sales of $23.06B, which missed the average analyst estimate of $23.13B.
Amazon (AMZN) noted that the revenue for the segment grew 12% year-over-year. Customers are optimizing workloads in a less certain economic environment by taking advantage of things like moving from hourly rates to year-long commitments, for example.
Generative AI is already a relatively big business for Amazon (AMZN) even though it’s still early days, executives said on the call.
For the third quarter, the retailing behemoth reported third-quarter earnings per share of $0.95 compared to the average analyst estimate of $0.60. Sales of $143.08B compared to the revenue of $141.56B.
For the fourth quarter, net sales were forecast at $160B to $167B, compared to the estimate of $166.57B.
Shares fluctuated after the close as investors digested the results as tech stocks have turned lower in recent days.