“As we've said before, we expect AWS operating margins to fluctuate over time, driven in part by the level of investments we're making at any point in time.”

In context

“e taken a number of actions to protect the customer experience. We're doing everything we can to keep our prices low for customers in a way that makes economic sense. Moving next to our AWS segment, revenue was $29.3 billion in Q1, an increase of 17% year-over-year. AWS now has an annualized revenue run rate of more than $117 billion. During the first quarter, we continue to see growth in both Generative AI business and non-Generative AI offerings. As companies turn their attention to newer initiatives, bring more workloads to the cloud, restart or accelerate existing migrations from on-premises to the cloud, and tap into the power of Generative AI. AWS operating income was $11.5 billion and reflects our continued growth, coupled with our focus on driving efficiencies across the business. As we've said before, we expect AWS operating margins to fluctuate over time, driven in part by the level of investments we're making at any point in time. We plan to bring on an increasing amount of capacity in the back half of the year. Now, turning to our cash CapEx, which was $24.3 billion in Q1. The majority of the spend is to support the growing need for technology infrastructure. This primarily relates to AWS as we invest to support demand for our AI services, and increasingly in custom silicon like Trainium, as well as tech infrastructure to support our North America and international segments. We're also investing in our fulfillment and transportation network to support future growth and improve delivery speeds and our cost structure. This investment will support growth for many years to come. While we primarily focus our comments on operating income, I'd like to point out that our first quarter net income of $17.1 billion includes”