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AWS CFO Says AI Infrastructure Boom Is Sustainable, AI Server Investment Payback Period Under Three Years
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Amazon Web Services (AWS) Chief Financial Officer John Felton said that the boom in spending on artificial intelligence infrastructure and services is sustainable because it is driving meaningful innovation. According to an Axios report on October 16 local time, Felton made this judgment when discussing AI investment. According to IT Home on October 18, this statement came at a time when market concerns about an "AI bubble" were heating up.
Recently, as debt levels have swelled, valuations have run high, and circular financing transactions have appeared frequently, some investors and analysts have become increasingly anxious about an AI bubble. They worry whether companies' revenue growth can keep pace with the massive infrastructure investment. This concern has made the return on AI capital expenditure a focus of attention.
Felton said the company's AI capital expenditure is bringing returns. His firsthand experience also proves that heavy investment in the AI field can yield gains. He believes the mature way to view AI is to treat it as a productivity-enhancing tool, not merely a "cost-cutting tool."
Felton said that as of the second quarter, the company had a backlog of nearly $500 billion in orders, equivalent to about RMB 3.35 trillion at current exchange rates. Based on this backlog, he "feels at ease" with current capital expenditure. He added that this backlog is supported by a vast customer base, covering industry giants and top AI labs, as well as small and medium-sized enterprises.
Regarding investment in AI servers, Felton revealed that AWS is achieving fruitful results. He said: "On these servers, we are seeing an investment return cycle of less than three years." This statement provides a concrete reference for the return efficiency of AI infrastructure investment.
Data shows that AWS achieved revenue of $42.2 billion in the second quarter, equivalent to about RMB 282.863 billion at current exchange rates, a year-on-year increase of 36.7%. The annualized revenue run rate of the AI business in this business unit has exceeded $25 billion, about RMB 167.573 billion. Its year-on-year growth rate is as high as triple-digit percentage.
From backlog, AI server return cycle to AI business revenue growth rate, AWS has provided multiple data points supporting its confidence in capital expenditure. Felton's statement and these data together respond to external doubts about whether AI infrastructure investment can continue. For a market worried about an AI bubble, these indicators will become important references for observing the AI infrastructure investment cycle.
