Amazon Tops Walmart Revenue via AWS

• AWS serves as the infrastructure backbone for AI data centers, providing computational resources critical to enterprise AI deployment
• Amazon's cloud infrastructure supports both first-party retail operations and third-party seller services
• AWS operating margins substantially exceed retail margins due to high-margin SaaS and infrastructure-as-a-service models
• The revenue composition shows AWS's outsized profitability contribution despite representing only 18% of total revenue

Amazon's revenue leadership through AWS diversification establishes a new competitive paradigm where technology infrastructure profitability subsidizes retail operations. This model demonstrates that retail companies without cloud/AI infrastructure capabilities face structural disadvantages in total revenue and profitability. The shift signals that future retail competitiveness increasingly depends on owning technology infrastructure rather than optimizing gross merchandise value alone. Walmart's physical retail dominance no longer guarantees overall financial leadership in an AI-driven economy where data center capacity and cloud services command premium valuations.