Amazon has paused some leasing negotiations for its AWS division, following a similar move by Microsoft. This decision raises concerns regarding the sustainability of the AI sector's growth. Amazon clarifies that existing agreements remain intact and that the pause is a proactive measure to ensure optimal capacity management rather than a sign of declining demand for AI cloud services. AWS's VP emphasizes ongoing strong interest in AWS's offerings and asserts that the adjustments are standard operational considerations to meet varied customer requirements efficiently.
According to a note issued by financial services biz Wells Fargo, the ecommerce giant is taking a breather from some of its negotiations over leasing of colocation capacity for its Amazon Web Services (AWS) cloud division, particularly those involving international partners.
In a LinkedIn post in response to the news, AWS VP for Global Datacenters Kevin Miller wrote: 'There continues to be significant interest and speculation about the datacenter expansion plans of AWS and other cloud providers.'
Miller claimed that there is no fall-off in demand for AI-related cloud services, and that the moves are simply a result of the retail giant's cloudy arm seeking the best deals to meet its capacity requirements.
This is routine capacity management, and there haven't been any recent fundamental changes.
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