Amazon’s AI investment plan disappoints investors, drops shares 7%

Amazon's recent decision to prioritize heavy spending on artificial intelligence over immediate profits has led to a drop in its stock prices. The company projected lower-than-expected operating income for the current quarter, causing shares to fall 7%. CEO Andy Jassy aims to capitalize on the generative AI boom, despite investor impatience. Amazon's strong AWS performance contrasts with weaker e-commerce results, highlighting shifting business dynamics and ongoing investments.

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By Spencer Soper

Amazon.com Inc., risking Wall Street's displeasure, told investors that profits for now will take a back seat to heavy spending on artificial intelligence. 

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