AWS CEO talks key to AI ROI: Diversified revenue streams

Artificial Intelligence has become a significant investment for tech companies, but producing a return on investment (ROI) can be challenging. At the 2024 Goldman Sachs (GS) Communacopia and Technology Conference, Yahoo Finance reporter Madison Mills sits down with Amazon (AMZN) Web Services CEO Matt Garman to discuss the company's AI strategy.

Garman emphasizes that AI is "growing very rapidly" at AWS, already generating multibillion-dollar revenues. He highlights AWS's diverse monetization streams, including selling AI models, providing infrastructure, and offering services for training large language models.

"This is a technology that has such huge potential to deliver massive gains for enterprises, for start-ups, and for customers of all sizes," Garman told Yahoo Finance, stressing that their current business model allows them to thrive financially off AI.

Catch Yahoo Finance's full interview with Matt Garman here.

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This post was written by Angel Smith

Video transcript

More broadly, the RO I on a I has been a huge topic this earnings cycle for investors.

I'm curious.

What kind of revenue are you projecting that AWS could be getting coming in from a I specifically for your own business?

Yeah.

I mean, we we we, um we see the A i business growing very rapidly, and it's already a a multibillion dollar business for us.

Um, and and it's continuing to grow very well.

And so I think, for our perspective, we are fortunate that we make money in a number of different ways, whether it's from selling models but also from the infrastructure of of providers training large models on top of us.

Um And so there's a bunch of those pieces where where we can go monetize those, um, I think over time, this is a A technology that has such huge potential to deliver massive gains for enterprises and for start ups and and customers of all size that, um but I think that the the payout for us is is it's very similar to our existing business.

Really, it's We go invest in infrastructure.

We invest in compute, we invest in databases.

We invest in technology, and then customers come and they they pay us by the hour for it.

And so in many ways, for us, the model is not all not all that different than the core cloud model.

It's a different use case.

It's growing really rapidly.

Um, but it's it's a model that that kind of how we built the business up to 100 and $5 billion run rate that we're at today.