Amazon Spent More on Data Centers Last Quarter Than AWS Earned in Revenue. Should Investors Worry?
Amazon (NASDAQ:AMZN) has proven itself to be one of the early winners of the artificial intelligence (AI) boom, and this is thanks to its cloud computing business. Amazon Web Services (AWS) is a hub for anything AI, offering the chips and systems needed to power AI workloads. And thanks to this, AWS’ revenue has soared, reaching a $169 billion annual run rate in the second quarter.
But the report also shows us another trend that might not please investors. And that’s the fact that the company spent more on data centers in the period than AWS earned in revenue. Does this spell trouble for the AI giant? Let’s find out.
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