{"id":36219,"title":"Amazon Cloud Business Soars as AI Demand Fuels Record Investment and Growth","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2024-11-01T08:51:03+00:00","modified":"2024-11-01T08:51:03+00:00","canonical_url":"https://stockmark.it/amazon-cloud-business-soars-as-ai-demand-fuels-record-investment-and-growth/","markdown_url":"https://stockmark.it/amazon-cloud-business-soars-as-ai-demand-fuels-record-investment-and-growth.md","json_url":"https://stockmark.it/amazon-cloud-business-soars-as-ai-demand-fuels-record-investment-and-growth.json","category":"Artificial intelligence","categories":["Artificial intelligence","Financial","Tech"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/2023/01/amazon-st-2.jpg?fit=800%2C400&quality=89&ssl=1","format":"news","language":"en-GB","content":"Amazon’s quarterly revenues have witnessed a remarkable surge, driven by what CEO Andy Jassy describes as a “once in a lifetime opportunity” in generative artificial intelligence, coupled with robust advertising demand. The tech giant’s shares responded positively in after-hours trading on Thursday.\n\nThe scramble for generative AI development has created an unprecedented demand for cloud storage capacity. Amazon Web Services (AWS), the company’s vital profit generator, reported sales of $27.5bn, marking a 19% year-on-year increase. The cloud division’s AI business, while not specifically detailed, is experiencing “triple digit” revenue growth according to Jassy.\n\nThe AI boom has necessitated substantial capital expenditure, with Amazon investing £22.6bn in property and equipment during the quarter, nearly doubling from £12.5bn in the previous year. The company projects annual spending of £75bn, with higher figures anticipated for the following year.\n\nThe Seattle-based organisation’s overall revenues climbed 11% year-on-year to £159bn, exceeding analyst expectations. The forecast for the upcoming holiday quarter suggests net sales between £181.5bn and £188.5bn, aligning with market predictions of £186.4bn.\n\nAmazon’s advertising business demonstrated remarkable resilience, with revenue jumping 19% to £14.3bn. The company’s net income of £15.3bn significantly outperformed analyst estimates of £12.2bn, representing a 50% increase from the previous year.\n\nThe tech giant’s market valuation is poised to surpass £2tn, with shares rising 6% in after-hours trading. This growth trajectory reflects Amazon’s strategic positioning in the AI market, competing against fellow tech behemoths Meta, Microsoft, and Alphabet in what industry experts are calling “cloud 2.0”."}