FT reports:
Tech earnings highlight that infrastructure for AI is more profitable than AI services, with cloud computing leading profits at Alphabet, Microsoft, and Amazon. Amazon Web Services, the largest cloud business, significantly contributes to Amazon's profits, driving its recovery in operating income and free cash flow post-pandemic.
Post-pandemic, Amazon's expanded logistics and staffing surged costs, but recent financial strategies have restored profitability, tripling income and achieving over $50 billion in free cash flow.
Amazon's future investments, particularly in AI and potential dividends, remain uncertain. Increased capital expenditure is expected, especially in data centres, but the company is cautious about detailing future AI spending and has not committed to paying dividends.