It is going straight to Jeff Bezos pocket selling them servers at at 10 to 20 times markup then reasonable
I don't want to argue that AWS is cheap, but I call hyperbole here. Where can I find an m5.large (2 core 3.1GHz CPU, 8GiB RAM, 10Gbps network, $70/month) for $7 USD a month?
Then there are all the services that ain't plain servers, those are generally priced at at least a 10x markup, some of them much more than that.