Amazon's Q2 profit soars 35% on AI bets
Amazon just posted a 35% profit boost for Q2, raking in $18.2 billion.
This surge comes from big bets on artificial intelligence—think smarter Alexa and new AI shopping tools—as well as strong sales of $167.7 billion (up 13% from last year).
The company outperformed Wall Street predictions, even with ongoing trade challenges.
AWS drives growth, but AI spending raises concerns
CEO Andy Jassy credits the growth to Amazon's expanded AI features and a strong performance by AWS, which saw sales climb 17.5% to $30.9 billion thanks to higher demand for cloud-based AI services.
But not everyone's cheering: heavy spending on AI infrastructure nearly doubled capital expenses and cut free cash flow, causing shares to dip over 3% after hours.
Still, Amazon expects next quarter's sales to keep climbing, showing they're betting big on tech shaping their future.