Amazon.com warned investors that it could face capacity constraints in its cloud computing division despite plans to invest some $100 billion this year, with most of the money going toward data centers, homegrown chips and other equipment to provide artificial intelligence services.

CEO Andy Jassy, determined to turn Amazon into an AI supermarket, is spending big to retain the company’s edge in cloud-computing services. Still, he warned growth would be “lumpy” owing to challenges securing sufficient hardware and electricity.

The concerns echo those of rival Microsoft, which last week said its cloud sales growth was hurt because it didn’t have enough data centers to handle demand for its AI products.

Bloomberg Intelligence senior technology analyst Anurag Rana examines this development and what it means for Amazon, Microsoft as well as Alphabet for the rest of 2025. Anurag speaks with Tom Keene and Paul Sweeney on Bloomberg Radio. (Source: Bloomberg)