How Amazon may be seeing signs of weakness in the business it invented

Amazon Web Services, the cloud computing pioneer, is showing signs of struggle. Competitors are surging ahead in the artificial intelligence race. A recent 15-hour outage highlighted vulnerabilities. Google’s significant chip supply deal with Anthropic, an AI startup Amazon invested in, further impacts AWS’s AI ambitions. While still a market leader, AWS’s dominance is eroding. Internal bureaucracy and a slow response to market shifts are hindering progress. Loyal customers are exploring alternatives, forcing Amazon to adapt rapidly.