Amazon’s Billion-Dollar Bet on Artificial Intelligence

Amazon is undergoing a fundamental transformation as its cloud computing division, Amazon Web Services (AWS), becomes the primary engine of growth and profitability, while its foundational e-commerce business sees its relative contribution shrink. This strategic pivot, underscored by massive investments in artificial intelligence, is reshaping the company’s identity and its appeal to investors.

The company’s latest financial results highlight this shift. For the third quarter, revenue climbed 13.4% to $180.17 billion. Earnings per share reached $1.95, significantly surpassing market expectations. The standout performer was AWS, which saw its revenue expand by 20% and crossed a critical milestone by achieving an annualized revenue run rate exceeding $100 billion.

AWS is not merely a Read more...