In a recent earnings call, Amazon CEO Andy Jassy announced that AWS is extending the lifespan of its servers to six years. This extension comes after previously extending the lifespan from four to five years in 2022. The net profit of AWS is expected to increase by $900 million in the first quarter of this year solely due to the server extension of a single listing.
While the servers are being utilized for a longer period, Jassy also mentioned that AWS’s investment has increased. This is due to the need for investing in generative AI infrastructure, along with expanding data centers to various regions. It is projected that AI revenue will rapidly increase to billions of dollars in a few years. However, Jassy acknowledged that AI revenue is currently not substantial.
Furthermore, Jassy pointed out a decrease in cloud compression expenses and a resurgence of new projects. This includes an increase in cloud migration, leading to a $1.1 billion increase in AWS revenue compared to the previous quarter.
TLDR: Amazon CEO, Andy Jassy, revealed that AWS is extending server lifespan to six years, resulting in a $900 million increase in net profit for the first quarter. Increased investment in generative AI infrastructure and data center expansion contributes to higher revenue projections. Cloud cost compression is decreasing, leading to new project investments and a $1.1 billion increase in AWS revenue.
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