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Amazon Reports 37% AWS Growth as AI Cloud Spending Faces Contest

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Amazon reported AWS growth of 37% YoY, with operating margin rising to 39%, as data center revenue reached $75.25 billion (+92% YoY). Q2 capex totaled $54.2 billion and guidance points to about $200 billion for FY2026, while TTM free cash flow turned negative at -$7.6 billion. Amazon stressed customer demand for choice in NVIDIA chips as Anthropic and OpenAI commit to Trainium.

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