AWS states that the return period on AI server investments is less than three years

According to a report by Axios, John Felton, Chief Financial Officer of Amazon (AMZN.US) Web Services (AWS), stated that spending on AI infrastructure and services is sustainable, as these investments are driving substantial innovation. Felton noted that AWS's AI capital expenditures are yielding returns and that enterprises should view AI as a tool to boost productivity rather than merely a means of cost reduction. Felton also mentioned that as of the second quarter, AWS's backlog of orders was close to 500 billion USD. Its clients include not only large enterprises and AI labs, but also small and medium-sized businesses, which makes him feel “reassured” about the company’s capital expenditure plans. He emphasized: “The demand is real.” He further pointed out that the payback period for AWS's AI server investments is less than three years. Regarding whether AI investments can continue to generate returns, Felton said AWS’s internal data shows a “roughly linear relationship” between token usage and productivity gains. AWS is currently seeing “significant returns on investment and productivity improvements” and plans to further expand such investments.