Amazon is broadening its artificial intelligence offerings through Amazon Web Services, rolling out new models and workplace tools in September as investors track AMZN stock. The launches included OpenAI's GPT-6 Astra model on Amazon Bedrock, the Amazon Quick desktop application, Moonshot AI's Kimi K3 model, and Amazon Connect Talent.

The additions extend AWS's lineup for companies building AI systems, coding tools, hiring services, and automated workplace software. Amazon said hundreds of thousands of customers use Bedrock, and that second-quarter spending on the service exceeded spending across every earlier quarter combined globally. Bedrock now provides customers access to a wider range of outside models alongside Amazon's own technology — an approach that lets enterprises reach multiple developers' models through a single cloud platform — while Connect Talent brings AI voice interviews and candidate assessments into recruitment workflows.

AWS Growth Accelerates

AWS entered the second half of 2026 with strong momentum. Second-quarter sales rose 37% to $42.2 billion, and operating income climbed to $16.6 billion from $10.2 billion. The segment's operating margin widened to 39.4% from 32.9%.

Amazon also disclosed that its AI business has surpassed a $25 billion annual revenue run rate — a figure that annualizes recent sales to measure fast-growing businesses — and continues to grow at triple-digit rates. Recent reporting on Amazon's $8 billion Nvidia chip financing plan highlights how the company is exploring new ways to fund AI infrastructure while expanding data-center capacity.

AI Spending Weighs on Cash Flow

Amazon guided to third-quarter net sales of $197 billion to $202 billion and operating income of $22.5 billion to $26.5 billion. Third-quarter results, when reported, will be measured against that outlook. However, the company's trailing 12-month free cash flow, which captures cash remaining after operating costs and capital investments, moved to a $7.6 billion outflow as property and equipment purchases increased by $66.1 billion, driven mainly by AI infrastructure.

Management also warned about memory-chip supply volatility, a supply-side consideration for the data-center buildout. In Europe, AWS faces a separate challenge: recent reporting on a possible EU cloud compliance deadline indicates regulators may place new requirements on major cloud providers, including Amazon and Microsoft.

Cloud Rivals Keep Pressure High

Amazon's continued investment comes as Microsoft and Alphabet expand their own AI cloud businesses. Recent AI investment activity across chip and cloud companies shows that demand for computing capacity remains strong across the sector, keeping spending levels elevated among large technology firms.

Microsoft reported 43% growth in Azure and other cloud services, with Azure revenue exceeding $100 billion for fiscal 2026. Alphabet reported Google Cloud revenue of $24.8 billion, up 82%, with backlog, a measure of contracted future business, reaching $514 billion.

For AMZN stock, AWS growth, margins, and capital returns remain the key reported measures as the company balances expansion against mounting infrastructure costs.

Source: Blockonomi