AWS looks to bring its AI game to tackle flagging growth

The leading cloud infrastructure provider has lined up significant capital expenditure to catch up with the generative AI pace set by Google and Microsoft.

Amazon Web Services is in a bit of a pickle.

Earlier this month, Amazon.com Inc. announced its financial results for its second quarter of 2023. The AWS segment’s sales increased 12% year-on-year, reaching $22.1 billion. However, the growth rates of AWS have dropped substantially over the last three quarters—from 20% to 16% to 12% this quarter. AWS’s operating income has also declined for three consecutive quarters. This is even more worrying since the AWS division has been a growth driver for Amazon over the years (of its other two, the North America segment rebounded from Q2 operating income losses last …

Author

Abhishek Baxi

Abhishek writes on technology trends, gadgets and SMBs, and has over a decade of experience—both as an industry watcher as well as a participant. He quit Microsoft in 2011 to become an independent digital consultant, and to write more, travel randomly, watch a lot of movies and wake up late on weekdays.

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