Amazon Cloud Unit Secures Major AI Deal

3 months ago

Carol Massler

"I feel as though for quite some time we were talking how it was behind. Uh but after the earnings report now we're seeing the cloud unit has signed a 38 billion deal to supply a slice of open AI bottomless demand for computing power. The ticker of course is AMZN. The stock gained 4% today. Uh the open AAI will pay Amazon web services for access to hundreds of thousands of NVIDIA graphics units. Uh we saw from the earnings report Amazon web services revenue came at 33 billion an increase of 20% that was number everyone was looking at and we saw the most positive reaction from analysts. So clearly things are looking well for that business."

Amazon (AMZN) has strengthened its cloud segment by securing a $38 billion deal related to AI computing power, with its AWS revenue reaching $33 billion (up 20%) and a 4% stock gain. Analysts have raised price targets, underscoring a renewed bullish sentiment for the business.

Related Stocks