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Amazon

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AWS Powers Amazon’s Record Margins While AI Spending Drains Cash Flow

AWS Powers Amazon’s Record Margins While AI Spending Drains Cash Flow

Amazon’s third-quarter 2026 results painted a study in contrasts: robust top-line growth and record operating margins driven largely by AWS, paired with mounting cash-flow pressure as heavy AI investments and capital expenditures weigh on liquidity. Revenue rose to $201.9 billion, operating income jumped sharply, yet free cash flow turned negative for the trailing year—signs that Amazon is balancing a profitable core with aggressive, expensive bets on AI infrastructure. A quarter…

Saugata Datta3 min read90
Amazon Drops NDAs as Data Center Backlash Grows

Amazon Drops NDAs as Data Center Backlash Grows

Amazon’s recent move to stop using nondisclosure agreements (NDAs) with government agencies marks a tactical shift in a widening dispute over the role of large data centers in local communities. Announced by AWS CEO Matt Garman in a blog post, the change comes as cities and states across the U.S. consider moratoriums and tougher scrutiny of new facilities. The announcement is short but strategic: Amazon is trying to blunt a…

Saugata Datta4 min read318
Amazon Expands Developer Toolset: Claude Code and Codex Join Kiro on AWS

Amazon Expands Developer Toolset: Claude Code and Codex Join Kiro on AWS

Amazon has quietly shifted the rules of engagement for its internal developer community. In a recent staff note, the company announced that tens of thousands of its developers will now have immediate access to Anthropic’s Claude Code and, soon, OpenAI’s Codex — both hosted on AWS and Amazon Bedrock. The move signals a notable loosening of earlier restrictions that favored Amazon’s own agentic coding service, Kiro, and underscores a broader…

Saugata Datta5 min read414
Two Words, One Deal: How “Stateful” vs “Stateless” Could Decide a $50 Billion Cloud Dispute

Two Words, One Deal: How “Stateful” vs “Stateless” Could Decide a $50 Billion Cloud Dispute

Last week’s reporting brought into sharp relief a narrowly technical — but potentially enormous — dispute between Microsoft, Amazon and OpenAI over a reported $50 billion commercial arrangement. At the center of the controversy are two terms engineers use every day: “stateful” and “stateless.” Depending on how those words are interpreted, Microsoft may have grounds to claim a breach of its exclusivity agreement with OpenAI, or Amazon and OpenAI may…

Saugata Datta5 min read572
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