Amazon rallies on cloud recovery as it chases Microsoft for AI business

) rallied nearly 6% on Friday on signs that growth in its main profit driver, the cloud business, was picking up pace after two years of sluggishness due to lower client spending.

“Tech investors can breathe a sigh of relief, Bernstein analysts said in a client note, adding that “AWS growth sounds ready to re-accelerate even without AI.” In the July-September period, Amazon posted its first quarter-on-quarter increase in cloud growth in nearly two years, although the unit’s revenue fell short of estimates.

To be sure, Amazon’s cloud business is larger than that of Microsoft and Google. But the e-commerce firm is seen as a laggard in the AI race that Microsoft is leading with its bet on OpenAI and focus on big clients that already use its services.

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