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khurs 2 hours ago

AWS have 35% profit margins.

Google Cloud recently told Meta they couldn't supply all the ai compute they want so Meta has no choice but to secure their supply?

https://memeburn.com/google-limits-metas-gemini-ai-access-as...

cmiles8 2 hours ago | parent [-]

Yes… and AWS is critical to the cash flow and valuation of its parent Amazon. The market looking like it’s trending towards oversupply does not paint a good picture in that context. AWS has to operate at these margins as most of the rest of Amazon is a very low margin business.

Google, Microsoft and others have separate cash cows. For Amazon, AWS is the cash cow. They can’t afford a blip here.