Amazon’s Cloud Acceleration Calms Investor Fears of AI Bubble

Amazon.com Inc. posted robust cloud growth that reassured investors that the tens of billions of dollars the company and its peers are pouring into artificial intelligence will pay off.

In the third quarter, Amazon Web Services generated $33 billion in revenue, a 20% increase from a year earlier, the company said in a statement on Thursday. The gain exceeded the 18% growth that analysts had expected and marked the biggest year-over-year rise since OpenAI’s ChatGPT came on the scene in late 2022.

The results reinforce the logic that major technology companies such as Microsoft Corp. and Alphabet Inc.’s Google have ...