Amazon’s cloud computing unit is growing steadily, keeping pace with AI demand, but the e-commerce giant’s massive spending on AI data centers and weaker advertising performance are worrying investors. Amazon on Thursday reported third-quarter revenue of $201.9 billion, slightly missing expectations. Its profit was $20.7 billion, which also fell short of expectations and was down from the same period a year ago. Amazon said the decline was due to gains it recorded a year earlier from its investment in AI company Anthropic. Amazon Web Services, the cloud unit, saw third-quarter sales rise 39.3% to $45.98 billion, topping Wall Street targets and marking its fastest growth in years. The results showed that demand for Amazon’s cloud services, particularly those tied to AI, remains high. But the Seattle-based company is also continuing to spend at unprecedented rates to keep up, and performance in its non-cloud businesses is weakening. On Thursday, Amazon said its quarterly capital expenditures totaled $75.9 billion and reiterated that it expects its 2026 capital spending to be about $220 billion. Read more [paywall removed for Redditors]: https://fortune.com/2026/10/29/amazon-shares-sink-as-spending-on-ai-overshadows-growth-in-cloud-unit/ submitted by /u/fortune
Originally posted by u/fortune on r/ArtificialInteligence
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