Amazon Strikes $11.6B Globalstar Deal; AWS AI Run Rate Tops $15B
AWS AI services annualized run rate topped $15 billion as AWS plans to deploy over one million Nvidia GPUs through 2027. Amazon agreed to buy Globalstar for $11.57 billion with 2027 close for satellite IoT expansion, and Fox named AWS its preferred AI cloud provider for streaming operations.
1. AWS AI Services Reach $15 Billion Run Rate
AWS achieved an annualized AI services run rate exceeding $15 billion in Q1 2026, driven by strong demand for machine learning and generative AI workloads. The division plans to add over one million Nvidia GPUs across 2026 and 2027 to support a potential ramp toward $100 billion in total AWS revenue.
2. Globalstar Acquisition Expands Satellite IoT Footprint
Amazon entered an $11.57 billion agreement to acquire Globalstar, securing satellite frequency licenses and operational infrastructure for enterprise and government IoT connectivity. The transaction, slated to close in 2027, positions Amazon as a direct competitor to Starlink and accelerates its low-earth-orbit connectivity strategy without lengthy regulatory processes.
3. Fox Selects AWS as Preferred AI Cloud Provider
Fox designated AWS as its preferred cloud partner for artificial intelligence workloads on the FOX One direct-to-consumer platform. AWS will deliver services including Elemental MediaLive, MediaPackage, MediaTailor and AI tools to enhance content delivery, streamline operations and support monetization.
4. Grocery Segment Revenue Milestone
Amazon’s U.S. grocery business reported over $150 billion in gross sales for 2025, making it the country’s second-largest grocer. This milestone underscores the success of Amazon Fresh and Whole Foods in diversifying revenue beyond e-commerce and cloud services.