Amazon Web Services (AWS), the Cloud arm of Amazon, has seen its revenue increasing 39 percent to $16.11 billion in the September quarter, as customers of all sizes and across all industries are using AWS as the preferred cloud provider for machine learning services.

AWS generated $4.88 billion in operating income in the July-September period.

“AWS has seen a re-acceleration of revenue growth as customers have expanded their commitment to the cloud and selected AWS as their cloud partner,” said Brian T Olsavsky, SVP, and Chief Financial Officer.

A lot of customers are accelerating their journey to cloud-based on the pandemic.

“We’re expanding our customer base into a lot of different areas, a lot new different customers we add. Many new products highlighted a few of our machine learning products. So we feel really good about the acceleration in growth,” Olsavsky said during the company’s earnings call late on Thursday.

Because of AWS performance, Amazon’s Q3 revenue of $110.8 billion represented a two-year compounded annual growth rate of 25 percent versus a pre-pandemic growth rate in the low-20 percent range, the company said.

For the first time, sales from Amazon services have surpassed its retail sales.

While net product sales were $54.9 billion, revenue from AWS, advertising, third-party seller services, and Prime subscriptions were $55.9 billion.

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