Amazon runs the largest online store in the United States and rents cloud computing to businesses and governments through Amazon Web Services. AWS pioneered renting computing power over the internet, and Amazon built its own delivery network to get orders to customers quickly. Shoppers buy from Amazon and from independent sellers on its store, and Prime members pay a subscription for fast free shipping, streaming video and music, and other perks. AWS rents out computing power, storage, databases, and AI tools so companies can run software without owning servers, and Amazon also makes Kindle e-readers and Echo speakers with the Alexa assistant. Jeff Bezos founded Amazon in 1994, and it is based in Seattle, Washington.
Company Size
10,001+
Company Stage
IPO
Headquarters
Seattle, Washington
Founded
1994
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Amazon faces scrutiny after Zenity Labs disclosed critical security flaws in AWS Bedrock AgentCore that affected all agents in an account. Researchers found that a single malicious prompt could expose internal data and cloud credentials. AWS has since mitigated the issue. The disclosure comes as Amazon cuts nearly 1,000 jobs across several core units while it continues to hire heavily for AI roles. Amazon sells cloud infrastructure that underpins many corporate AI projects. Security lapses in its tools could shape how customers judge AWS's reliability and the payoff from its heavy AI spending.
Jeff Bezos predicts AI will enable three-day workweeks and a return to single-income households. Speaking to Fox News, the Amazon founder said AI-driven productivity will allow people to support their families whilst working fewer hours. Bezos suggested labour shortages may emerge as families no longer require two incomes. "It's going to be difficult to hire people, because the productivity in the economy will make it so that people don't want to work two jobs," he said. Amazon plans to spend over $200 billion on capital expenditures this year, largely for data centres, whilst cutting approximately 30,000 corporate roles since late last year. Bezos' net worth has reached $365 billion, boosted partly by Blue Origin's recent $10 billion funding round, which valued the space company at $140 billion.
US companies are expected to deliver strong third-quarter earnings growth, driven primarily by artificial intelligence-related firms. Analysts predict S&P 500 earnings will rise approximately 31% year-over-year, with two-thirds of that increase coming from the technology sector and AI companies including Alphabet, Amazon, and Meta Platforms. The tech sector's performance helped push the S&P 500 to a record high this week. Energy earnings are projected to surge around 115% due to rising oil prices amid geopolitical tensions. However, some strategists question whether this growth can match the second quarter's 54% year-over-year earnings increase. Semiconductor companies, major AI beneficiaries, expect earnings growth of about 136% in the third quarter, down from 158% in the second quarter. Investors remain concerned about sustainability, particularly regarding continued capital expenditure in AI infrastructure.
American tech companies are expanding data centre operations in Australia, but face growing opposition from residents and farmers. Local communities near Melbourne are protesting planned facilities, citing concerns over noise, energy consumption, and water usage. Investment in Australian data centres could exceed $100 billion by 2030, according to the Commonwealth Bank of Australia, with Microsoft and Amazon already committing funding. Companies are attracted by Australia's geographic location, renewable energy access, and democratic stability. However, the expansion faces obstacles. New regulations on water efficiency and power supply take effect next year. Australia's strict copyright protections pose challenges for AI companies seeking regulatory certainty. Recent revelations that an OpenAI agent accessed Australian government websites without authorisation have intensified scrutiny. Experts question whether AI companies should receive special treatment regarding accountability.
Amazon is discontinuing its Fire tablets after 15 years, replacing the budget devices with a pricier line featuring its Alexa+ voice assistant. The company will sell through existing Fire tablet inventory but has stopped manufacturing new units. The new Alexa Tablets run on Android with Google Play Store access, priced from $229.99 to $499.99. Models include the aluminium-cased Alexa Tablet 12 Pro, 11, and 8, shipping from 14 October in the US, Mexico, and Canada. Amazon says existing Fire tablets remain fully supported with continued security updates. The move echoes the company's previous discontinuation of its Fire Phone, which founder Jeff Bezos called a "tiny little blip".