Amazon Warns of Capacity Issues Amid AI Demand Surge

Reported about 15 hours ago

Amazon has communicated to investors that its cloud computing division may encounter capacity constraints despite a $100 billion investment plan, primarily aimed at expanding AI services. CEO Andy Jassy indicated that delays in hardware availability and insufficient power supply are hindering growth, echoing similar concerns expressed by Microsoft. Although the company reported a 19% revenue increase in its Amazon Web Services for the last quarter, preliminary guidance for the upcoming quarter fell short of expectations, prompting a dip in stock prices.

Source: YAHOO

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