Customers Want
Garman is planting AWS's flag in the AI infrastructure race: a committed backlog of over half a trillion dollars is revenue visibility most companies can only dream of. In our view, this quietly answers the 'AI bubble' crowd — customers signing multi-year commitments looks like the opposite of speculative froth.… more
Still, some skepticism is warranted: part of that backlog likely comes from AI startups burning venture money, and if model economics shift, such commitments can be renegotiated or stranded. The numbers also confirm that cloud growth has reaccelerated on AI compute, raising pressure on Microsoft and Google to justify their even larger capex. The real bottleneck from here is not demand but supply — power, chips and land will decide who can actually deliver on these promises.
Customers want to know they'll have the capacity to grow with AI, and we're investing to make sure they do. We have lots of capacity for our customers. $184B run rate, 39.3% growth, $578B committed backlog, 40%+ growth ahead. Thanks @EdLudlow for having me. https://t.co/eE8ysrnEVF
Source:
X — Matt Garman
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