How Amazon Is Losing the Cloud AI Margin Race

Amazon's cloud business has long been the profit engine of the company. But in 2026, that engine is sputtering. While Microsoft and Google pour capital into AI infrastructure and see revenue accelerate, Amazon Web Services is growing slower and spending more. This episode unpacks the numbers: AWS operating margins have compressed by over 500 basis points year-over-year, capital expenditures have surged past $75 billion annualized, and the payoff in AI workloads remains uncertain. Lucas and Luna walk through the competitive dynamics, the impact of NVIDIA's GPU shortages, and whether Amazon's heavy investment in custom silicon — the Trainium and Inferentia chips — can turn the tide. They also discuss how the broader market rotation away from mega-cap tech is amplifying the pressure on Amazon's stock, which is down nearly 6 percent in the past week. Is this a temporary bump in the road or a structural shift in cloud economics? #Amazon #AWS #CloudComputing #ArtificialIntelligence #Microsoft #GoogleCloud #NVIDIA #Trainium #Inferentia #Capex #OperatingMargins #MegaCapTech #StockPicking #Finance #Business #Investing #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo