AWS Grows 28% in Q1, Amazon Raises Capex to $180–190B
AWS revenue grew 28% in Q1 2026, trailing Google Cloud's 63% and Microsoft Azure's 40%, leading Amazon to raise capex guidance to $180–190 billion for AI infrastructure. The company plans to spin off its $20 billion Graviton and Trainium chip unit into a standalone business targeting $50 billion in revenue.
1. AWS Growth vs Peers
Amazon Web Services posted 28% year-over-year revenue growth in Q1 2026, significantly lagging Google Cloud’s 63% and Microsoft Azure’s 40%. This underperformance underscores intensifying competition in the cloud infrastructure market.
2. Increased Capital Expenditure Guidance
To support expanding AI infrastructure and data center build-outs, Amazon raised its full-year capital expenditure guidance to $180–190 billion, up substantially from prior estimates. This elevated capex outlook reflects heavy investment in computing capacity and networking.
3. Planned Standalone Chip Business
Amazon’s custom Graviton and Trainium chips generate a $20 billion annual run-rate internally for AWS. The company intends to build production capacity and launch a standalone chip division to capture up to $50 billion in external revenue.