Amazon Web Services holds 38 percent of corporate cloud spending but is losing market share to Microsoft, Google, and Oracle. AWS experienced a 15-hour outage affecting hundreds of businesses and faces internal bureaucracy that slows decision-making. Key talent in AI and chip development has departed, and some teams have missed market opportunities due to delays. Google has partnered with Anthropic, a startup in which Amazon invested $4 billion, and is supplying up to one million AI chips. Corporate customers and startups are increasingly considering alternatives to AWS, and some long-term clients are diversifying their technology providers. Amazon is reorganizing teams, accelerating product launches, and investing $11 billion in a new data center complex to support Anthropic and advance its AI strategy.
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