In today's Cloud Wars Minute, I explain how AWS is combining custom silicon, enterprise applications, and agentic AI to drive its resurgence.

Highlights

00:02 — I wanted to talk about an interesting development at AWS, which over the past several quarters has been on a very nice upswing in its business, powered in part by their development of what is now a very large and extremely fast-growing custom chips business.

00:37 — That comes down to a billion-dollar chip deal that AWS has just secured with Synopsys, a chip designer that AWS has been working with closely over the last several years, as AWS has built what is now a custom silicon chip business that has an annualized run rate of $25 billion.

01:09 — This new deal between AWS and Synopsys calls for the creation of new chips that they say are “application-optimized solutions.” So, the incredible advances in the power and capability of silicon now being tied directly into helping enterprise applications run more quickly, more securely, more insightfully, and to handle the incredible volumes of data and transactions in the AI economy.

02:28 — And I think this is something that, as I mentioned, has been a huge part of the resurgence of AWS. Last quarter, ended June 30th, AWS's growth rate jumped to 37 percent, by far the highest it's had in several years. We'll see some new numbers from AWS coming out at the end of this month or early November for Q3.

03:41 — So, this demand for more speed, more power, more insight, more security for all of these, I think, comes along at a time when business customers are starting to say, “Yeah, I'm going to use a lot of agentic AI, but I'm also going to continue to use the enterprise applications that are such an integral part of my business and how I work and where I work.”

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