An intriguing aspect of Amazon’s report is the controlled growth of AWS operating expenses. Despite significant investments in AI over the past year, AWS managed to keep its expenses from surging. In Q3 2022, the company reported operating expenses of $16.1 billion, a modest increase from $15.1 billion in Q3 2022, reflecting a 6.6% rise.
However, it’s worth noting that Amazon’s cloud business did not achieve the same level of success as some of its competitors, such as Google Cloud (up 22%) and Microsoft Azure (up 29%). This could be attributed to a combination of ongoing economic uncertainty and a slowdown in Amazon’s cost-cutting efforts, which have resulted in more than 27,000 job cuts across its entire portfolio.
