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Amazon Web Services CEO Matt Garman Talks Capex Investment
Brief
AWS CEO Matt Garman told Bloomberg the current acceleration in AWS growth is broad‑based — driven both by frontier labs (OpenAI, Anthropic) and by enterprise and startup customers embedding AI across industries. He quantified AWS's AI business at a $25 billion run rate that includes training and a rising share of inference, and said the trend is moving steadily toward inference as companies operationalize models.
On infrastructure and economics, Garman confirmed Amazon's corporate CAPEX this year is $220 billion (up $20 billion) and that AWS will continue heavy investment next year, noting many customers have made five‑year commitments and much capacity is spoken for through 2027–28. He described the chip business as a rental model inside AWS (Graviton for general compute, Trainium for AI), with Trainium largely sold out through next year and typical inference savings of roughly 20–30% on optimized workloads. Finally, Garman defended AWS's signing of the Open Weights letter and support for models such as 'Kimmi K3' (released July 27), arguing for an even regulatory framework and positioning Bedrock as the platform where open and licensed models can be monetized and offered to customers.
Why it matters
Matt Garman (AWS) said AWS's AI business has a $25 billion revenue run rate that includes both large-model training (e.g., OpenAI, Anthropic) and broad inference workloads across startups and enterprises.
Key details
- Garman told Bloomberg that the workload mix is shifting toward inference (no exact split given) as companies embed models into production; he expects inference share to keep growing.
- Amazon's corporate CAPEX for the year is $220 billion (up $20 billion); Garman — echoing Andy Jassy — said AWS will continue heavy CAPEX next year, noting much capacity is already spoken for through end of 2027 and into 2028 via multi‑year customer commitments.
- On chips, Garman said the $25 billion 'chip' run rate refers to renting capacity (Trainium and Graviton in AWS), that Trainium capacity is largely sold out through the end of next year, and customers can often save ~20–30% on inference costs by running on Trainium.
- Garman explained why AWS signed the Open Weights letter: to preserve customer choice and innovation (he singled out support for models like 'Kimmi K3,' released July 27), argued for even regulatory treatment between frontier and open‑weight models, and said Bedrock will host both open and commercial models as providers move toward licensing.