The AI-related layoffs at Amazon and some other firms reflect a "hollowing out of middle-skilled workers," Lynn Wu, a professor of operations, information and decisions at the University of Pennsylvania, told ABC News.

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.

Amazon said it has completed its Project Rainier data-center cluster, which is powered by nearly 500,000 of the company’s Trainium 2 chips.

The Wall Street Journal is reporting that the biggest firms in Silicon Valley have invested $400 billion into artificial intelligence technology just this year. Tech companies like Meta, Alphabet, Microsoft and Amazing are expected to increase their investment in AI next year.

The e-commerce giant said Amazon Web Services is growing at its fastest rate since 2022, driven by AI. Shares surged in after-hours trading.

Project coming online last week beat Amazon competitors into the market, and total investment may eventually exceed $11 billion, county official says.

Amazon's cloud revenue rose at the fastest clip in nearly three years, helping the company forecast quarterly sales above estimates and driving its shares up 14% in after-market trading.

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The e-commerce giant’s cloud-computing business has disappointed investors with its growth recently, but that appears to be changing.