Business
Amazon and Alphabet’s Profits Reveal Circular Nature of A.I. Boom
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Big companies like Amazon and Alphabet make a lot of money. They have good profits. This news is about how their money is connected. They put money into other companies. These are their investments. Many of these investments are in new companies that work with Artificial Intelligence, or AI.
AI companies need special computers to do their work. They use services called cloud computing. Amazon has a cloud service called AWS. Alphabet has Google Cloud. These AI companies pay Amazon and Alphabet to use their cloud services. So, Amazon and Alphabet get money in two ways: from their investments growing and from selling cloud services.
This creates a cycle. Amazon and Alphabet invest in AI. AI companies use their cloud services. This makes Amazon and Alphabet earn more money. It shows how the business of these big technology companies is linked together in a new way, especially because of AI.
Vocabulary Help
profits
The money a business makes after paying all its costs.
investments
Money put into a business or project to make more money.
cloud computing
Using a network of remote servers on the internet to store, manage, and process data, instead of a local server or personal computer.
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