Amazon Web Services is grappling with capacity constraints due to AI chip shortages, impacting growth despite strong demand.

The company’s cloud computing business showed strong growth, while a forecast for the current quarter disappointed investors.

Amazon CEO Andy Jassy has said that the company’s cloud computing growth could be tampered due to constraints in obtaining AI infrastructure and electricity to power data centers.

The pressure is on Amazon.com to deliver on lofty expectations for cloud computing in its fourth-quarter results on Thursday.

Amazon’s chief executive had predicted the company would spend more in 2025 than the roughly $83 billion it spent last year.

Amazon joined Microsoft and Google parent Alphabet in posting slowing cloud growth in last year’s fourth quarter.

Amazon.com Inc. shares have largely climbed on the back of two trends: strength in its cloud business and a focus on costs.

Amazon.com Inc. warned investors that it could face capacity constraints in its cloud computing division despite plans to ...

Amazon's e-commerce business continues to be one of its core strengths, with the company holding about 40% of the e-commerce ...

AWS has not been able to match the growth of Amazon’s competitors, with Microsoft Corp.’s Azure and Alphabet Inc.’s Google Cloud seeing cloud-related revenue rise by 31% and 30%, respectively. Even so ...

Amazon’s increased spending comes after a few years of cost-cutting from the company. Jassy announced layoffs in 2022 that ...