Amazon's quarterly performance beat expectations primarily due to strong growth in its cloud-computing unit, AWS, which achieved record operating income amid heavy investment in AI.
AWS operating income saw a remarkable 50% year-over-year growth, driven by a 19% increase in revenue, highlighting the unit's critical role in Amazon's financial success.
CEO Andy Jassy emphasized that while Amazon must invest significantly in AI infrastructure now, he believes that this will lead to healthy profit margins in the future.
Despite heavy investments, Amazon's overall capital expenditure aims to enhance its data center capabilities, reflecting a strategic focus on scaling its cloud services and AI offerings.
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