There has been a significant change at Amazon’s cloud-computing division. Adam Selipsky, the current chief of Amazon Web Services (AWS), will be stepping down next month. This move will allow Matt Garman, AWS’s top sales and marketing executive, to take over as CEO of the division, effective June 3.

The announcement, made by Amazon CEO Andy Jassy in an email to employees on Tuesday, marks a significant leadership change at AWS. Selipsky, who has helmed the cloud division since 2021, is leaving “to move onto his next challenge,” according to Jassy. Under Selipsky’s leadership, AWS has maintained its position as the leading provider of cloud infrastructure and services, contributing significantly to Amazon’s overall profitability.

AWS has been a key driver of Amazon’s financial success, consistently delivering strong sales growth and accounting for a substantial portion of the company’s operating income. Last quarter, AWS reported its strongest sales growth in a year, and it is projected to surpass $100 billion in revenue annually for the first time.

The leadership transition comes at a pivotal moment for AWS, which is intensifying efforts to capitalize on artificial intelligence (AI) services. Despite lagging behind competitors like Microsoft and Google in AI offerings, Amazon is rapidly expanding its generative AI business, a multi-billion dollar revenue stream according to company executives.

Jassy expressed confidence in Garman’s ability to lead AWS, highlighting his customer-centric approach, strong product leadership, problem-solving skills, and bias for action. Garman’s deep experience within AWS, having started as an intern in 2005 and rising through the ranks to become a key product leader, positions him well for the CEO role.

Selipsky, who previously served as Jassy’s right-hand during AWS’s formative years, left Amazon in 2016 to lead Tableau, a data visualization firm later acquired by Salesforce. His return to AWS three years ago was unexpected for many employees who anticipated Garman’s ascent to the top role.