ITHome October 18 news: According to an Axios report on October 16 local time, Amazon Web Services (AWS) Chief Financial Officer John Felton said thatthe boom in spending on AI infrastructure and services is sustainable, because it is driving meaningful innovation.
With debt levels swelling, valuations high, and circular financing deals frequent, some investors and analysts are growing increasingly anxious about an "AI bubble," worrying whether companies' revenue growth can keep pace with the enormous infrastructure investments.
John Felton said the company's AI capital expenditures are generating returns, and its firsthand experience proves that heavy investment in the AI field can pay off. He believes thatthe mature way to view AI is as a productivity-enhancing tool, not just a "cost-cutting tool."
Felton said that as of the second quarter, the company had a backlog of nearly 500 billion US dollars (ITHome note: about 3.35 trillion yuan at current exchange rates) in orders, and based on this he feels "comfortable" with current capital expenditures. This backlog is supported by a large customer base — "ranging from industry giants and top AI labs to small and medium-sized enterprises."
Felton revealed that AWS's AI server investments are yielding fruitful results, "on these servers,we are seeing a return-on-investment period of less than three years。”
Data shows that AWS achieved revenue of US$42.2 billion in the second quarter (approximately RMB 282.863 billion at current exchange rates), up 36.7% year over year; the business unit's AI business has surpassed an annualized revenue run rate of US$25 billion (approximately RMB 167.573 billion at current exchange rates), with year-over-year growth as high as triple-digit percentages.