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Amazon has announced a significant $10 billion investment aimed at expanding its cloud computing infrastructure in North Carolina, a move designed to enhance its AI capabilities and create 500 high-skilled jobs. This funding comes as Amazon Web Services (AWS) reported a 17% year-over-year growth in Q1, reaching a $117 billion annualized revenue run rate, along with a rise in operating income to $11.5 billion from $9.4 billion in the prior year.
Despite this growth, Amazon faces capacity constraints due to demand for AI solutions exceeding current capabilities. The North Carolina expansion is a strategic step to address this, positioning Amazon to better compete in the evolving AI landscape as its AI business segment now operates at a multi-billion-dollar annual revenue run rate with triple-digit growth year over year.
In the competitive landscape, Microsoft Azure outpaced AWS with a 31% revenue growth, reaching around $28 billion in the third quarter of fiscal 2025, while Oracle is enhancing its cloud infrastructure through partnerships with NVIDIA, aiming to carve a niche in AI workloads.
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