AWS CEO Matt Garman is not concerned about the so-called 'SaaSpocalypse' that many predict will lead to the demise of numerous software companies due to advancements in artificial intelligence. Instead, he sees this as a significant business opportunity for Amazon as the company deepens its software-as-a-service and AI-driven applications for everyday users.
Agentic AI Driving Change
In an interview with Fortune, Garman explained that the shift is driven by the rise of agentic AI, which is reshaping how work is accomplished. He stated, 'As we look across applications, we see that so many applications are getting done with AI and agents. And we think that there is just such a massive change out there that everything is going to be remade.'
Amazon Quick and New Applications
These remarks follow AWS's introduction of the Amazon Quick desktop app at a recent event in San Francisco. This app allows users to interact with an AI chatbot for tasks such as creating presentations and scheduling meetings. Referring to Quick, Garman added, 'I don't think personal productivity has really been remade for the last 30 years.' The company also unveiled new Connect applications designed for specialized workflows, including hiring, healthcare, and supply-chain management.
AWS is betting that software demand will continue to grow, even as AI reshapes how apps are built and used. The company has begun rolling out new tools for individual professionals while also strengthening partnerships to integrate advanced AI models into its cloud ecosystem.
Availability and Pricing
Amazon announced that Quick will be available to both AWS and non-AWS users, with free and paid tiers. Garman noted that while many successful apps will come from outside Amazon, AWS expects to build a select number of tools that gain user traction.
Partnership with OpenAI
AWS also announced a new partnership with OpenAI, allowing its business customers to integrate OpenAI's AI models directly into their services. This follows a revision to OpenAI's earlier arrangement, which had limited access to Microsoft's cloud platform. The agreement enables AWS users to access GPT models and Codex alongside other AI models already available on the platform, including those from Anthropic and Meta. Garman confirmed that the partnership includes a revenue-sharing component, though financial details were not disclosed.
AWS Growth and Investment
AWS remains Amazon's fastest-growing business segment, with revenue reaching $128.7 billion in 2025 and operating income of $45.6 billion. The company is continuing to invest heavily in infrastructure, with Amazon planning up to $200 billion in capital expenditure this year to support AI and cloud demand. Garman said such spending aligns with the company's growth trajectory. 'I don't know if I would have exactly expected we would be at the rate we are now, but it's heavily tied to how fast the business is growing,' he explained.
Garman added that AWS's expertise in running data centers efficiently could help maintain margins even as it expands into software offerings. 'We get to run and benefit from all the efficiencies that we get from AWS. We think many of these could have higher margins than just the infrastructure, where you add continuous value on top of those,' he highlighted.
