Big Tech
Amazon’s Shares Slide as AI Spending Plans Spook Investors
- Executives say costs will rise to meet demand for new services
- AWS cloud unit is a bright spot as quarterly sales surge 19%
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Amazon.com Inc., risking Wall Street’s displeasure, told investors that profits for now will take a back seat to heavy spending on artificial intelligence. The shares fell.
The company projected operating income for the current quarter ending in September will be $11.5 billion to $15 billion. Analysts, on average, were looking for $15.7 billion.