AWS revenue surged 37% as Amazon's platform strategy for AI models gains traction. CEO Andy Jassy says no single model will dominate, and Bedrock is the key.
Amazon delivered a blockbuster earnings report Thursday, with Amazon Web Services revenue jumping 37%. The growth came from a bet that looks increasingly smart: running many different AI models for customers rather than trying to build the best one itself.
CEO Andy Jassy told analysts on the call that the industry will not settle on a single dominant model. "There is not going to be one model to rule the world," he said. Companies building AI applications want access to a wide range of systems because different models will surpass one another over time and excel at different tasks, according to Jassy.
That dynamic has turned AWS Bedrock, the company's platform for accessing foundation models, into the centerpiece of Amazon's AI strategy. Jassy said Bedrock could eventually rival EC2, the flagship cloud computing business that drove Amazon's early cloud dominance.
Amazon has never prioritized building its own frontier models. The company developed the Nova range of models, but they struggled to compete with offerings from OpenAI and Anthropic. Business Insider reported this week that Amazon is overhauling its AI strategy, winding down most of the existing Nova line while shifting resources toward a new frontier-model initiative.
Jassy acknowledged the company remains committed to developing its own models. Having a leading model would give Amazon greater control over costs for both its consumer applications and AWS customers, he said. The company's Alexa digital assistant has already been reducing its reliance on Anthropic's costly models in favor of Amazon's own models to lower costs, according to the report.
Jassy predicted that within the next few years there will be at least a half dozen models that are comparably good to each other. "They'll all be on Bedrock," he said, "and one of them will be ours."
The approach aligns with a broader theme in enterprise AI, where trust in the platform often matters more than raw benchmark scores. Amazon's results suggest that strategy is already paying off, even before its own models catch up.
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