By Deborah Mary Sophia
(Reuters) – Pressure is on Amazon.com to meet high expectations in terms of cloud computing in its fourth quarter results Thursday, after Microsoft and Google reports on investors shook investors’ faith in billions of dollars of Big Tech in AI.
The actions of large technological companies have increased in the past two years on the conviction that the massive needs of artificial intelligence technology centers would feed investment for years.
But that was before the Chinese startup, Deepseek, declared that she had carried out the IA breakthroughs at a fraction of the cost, precipitating a sale in the technological actions which say that some said.
However, Amazon can be better positioned than its competitors to capitalize on a cheaper AI, according to analysts, due to its massive cloud activity and the slightest exposure to expensive tongue models than food applications such as Chatgpt.
The company should also publish its long-awaited and delayed generative artificial intelligence vocal service, depending on three people familiar with the issue, and has planned a press event for later this month to preview it.
Amazon Web Services (AWS), the largest cloud service provider in the world, should display its highest increase in revenues in eight quarters to 19.3%, according to data compiled by LSEG.
But Microsoft and Meta were both forced to defend their IA spending plans last week, and the sharing of Google alphabet-Parent fell 8% on Wednesday after declaring that it would spend more for CAPEX than analysts planned.
“The results of Microsoft and Google have put even more microscope on the growth of the Amazon cloud,” said Dave Wagner, portfolio director at Aptus Capital Advisors, who holds actions in the three technological companies.
“But if Amazon can crush it on their cloud numbers, the market will absorb this report.”
The company was the first major cloud supplier to adopt Deepseek AI models last month and said its capital expenses, mainly on AI, would be more than the $ 75 billion it estimated for 2024.
The slowdown in growth at Microsoft Azure and Google Cloud, the second and third and third cloud players, aroused a certain caution of analysts on AWS performance.
“Microsoft said it was constrained the capacity, Google said it was forced to capacity. It is more than likely, Amazon will say that it could also have been limited and that is why its growth rate n ‘is not up to what the market could have expected, “said Bob O’Donnell, chief analyst of Techalysis Research.
Some analysts see weakness in Rivals as a sign that Amazon may have taken the race for AI through efforts, in particular the doubling of its investment in Anthropic and offering a wide selection of AI models on its flat -Cloud form.