Amazon's cloud business records 18% growth in second quarter

In this articleAMZN your favorite stocksCREATE FREE ACCOUNTAmazon Web Services CEO Matt Garman speaks at the AWS re:Invent conference in Las Vegas on Dec. 4, 2024.Noah Berger | ReutersAmazon's cloud group grew recorded revenue growth of 18% in the second quarter, slightly ahead of analysts' estimates.Amazon Web Services continues to lead the cloud infrastructure market, but is facing intensifying pressure from Microsoft and Google, as all three companies ramp up investments in artificial intelligence to take advantage of booming demand.Microsoft and Google reported better-than-expected cloud results for the quarter, with higher growth rates than Amazon.On Wednesday, Microsoft CEO Satya Nadella said revenue from Azure and other cloud services exceeded $75 billion in the fiscal year ending June 30, with growth in the quarter of 39%

It's the first time Microsoft has vided a dollar figure for the

Last week, Alphabet reported revenue of $13.62 billion for its cloud computing , a 32% increase from a year ago.AWS' revenue for the second quarter totaled $30.87 billion, Amazon said on Thursday

AWS now represents 18% of Amazon's revenue."We have a meaningfully larger in the AWS segment than others," Amazon CEO Andy Jassy told analysts on a conference call. "I think the second player is 65% of the size of AWS."The cloud remains a fit center for Amazon

AWS generated $10.2 billion in second-quarter operating income, trailing the average analyst estimate of $10.9 billion, according to StreetAccount

Amazon's total operating income was $19.2 billion.During the quarter, AWS said it would open a data center region in Chile before 2027, and PepsiCo announced a multi-year agreement that involves moving workloads to the Amazon cloud.Last week Microsoft issued patches to its Point Server software after Chinese hackers exploited a vulnerability, gaining access to some clients' internal files. "For most companies they're putting data that they really care in the cloud," Jassy said. "The security and the privacy of that data matters a lot, and there are very different results in security in AWS than you'll see in other players."WATCH: Top Amazon AWS executive on the outlook for generative AIwatch now4:1604:16Top Amazon AWS executive on the outlook for generative AIWorldwide Exchange