This article first appeared on GuruFocus.

Amazon (NASDAQ:AMZN) is charging full steam into the AI era.

The tech behemoth just posted $180.2 billion in Q3 revenue, up 12% from a year ago, while its cloud business, AWS, found a fresh gear.

AWS sales skyrocketed 20% to $33 billion, super-charged by healthy demand for AI training and Amazon’s homegrown Trainium chips which saw a stellar 150% jump in sales from the prior quarter. CEO Andy Jassy said AWS is gaining momentum with more ompanies shift their biggest workloads to Amazon’s cloud for its performance and reliability.

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To meet the insatiable demand, Jassy said AWS has already doubled its power capacity since 2022 and plans to double it again by 2027. Amazon’s new Trainium3 chips are also on the way, promising even better performance for AI clients. Advertising remained a quiet powerhouse, up 22% to $17.7 billion, while grocery delivery expanded to more than 1,000 cities.