AWS CEO Matt Garman defends AI spending with a spread-out customer base

Introduction

AWS is about to spend an enormous amount of money on AI infrastructure, but CEO Matt Garman wants everyone to know it is not betting the farm on one or two customers to pay for it.

The Growth Numbers Behind the Confidence

Garman pointed to an annual revenue figure for AWS estimated between $169 billion and $170 billion, reflecting a 37% year-over-year increase. By the first quarter of 2026, the AWS AI revenue run rate had topped $15 billion, with projections calling for more than $25 billion later on.

AI and Enterprise

Amazon Bedrock, AWS's platform for building applications on top of AI models, has posted 170% quarter-over-quarter revenue growth in certain periods. Capacity on Trainium, Amazon's in-house AI training chip, is sold out for the next year. Meanwhile, AWS says its Graviton processors offer about 20% better cost-performance for many tasks.

Customer Agreements and Demand

Garman's answer has three parts: customer agreements reportedly underpin the spending, revenue is growing 37% year over year, and the client base is spread wide enough that no single customer can sink the plan.

Background and Partnerships

AWS has positioned itself as a neutral platform in the AI race. It maintains partnerships with both Anthropic and OpenAI, two of the most prominent AI model developers.

Conclusion

For investors, the most important signal is the link Garman draws between spending and signed demand. However, run rates and projections, including the forecast for AI revenue to exceed $25 billion, are forward-looking and could miss.