I don't necessarily believe this is the best explanation but: We know the economy is doing pretty poorly and tech companies are consolidating. Amazon is losing it's two main drivers of revenue: Irresponsible startups with huge AWS spend and no pressure to optimize their stack and consumers buying treats online. Regardless if people are spending on AI, the only thing businesses are investing on is AI and analysts at AWS are likely signaling that many AI companies are not seeing a large ROI and model developers will likely build their own versions of successful products (Claude Code). AWS doesn't want to scale up it's GPU fleet and be left holding the hardware bag. Amazon can't juice numbers for consumer purchases since the rest of the economy is contracting, most people are losing jobs, etc. So the easiest way to for Amazon to juice their metrics is to offshore office work that can be done anywhere. They can claim they are using AI - but from conversations with friends who are working at Amazon this does not sound very realistic - and ride the AI bubble with no liabilities.
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