According to CRN, Amazon CEO Andy Jassy explained during the October 30 earnings call that the company’s recent 14,000 layoffs weren’t financially or AI-driven but were about “culture.” Amazon generated $180 billion in Q3 2025 revenue with AWS hitting $33 billion, up 20% year-over-year. Jassy revealed Amazon is buying “a lot of Nvidia” products while developing its own Trainium2 chips, which he called a “multibillion-dollar business.” AWS has doubled its power capacity since 2022 and plans to double again by 2027, with Jassy predicting the Bedrock AI platform will become as big as Amazon EC2.
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Culture Over Cash
Here’s the thing that struck me about Jassy’s explanation: he’s insisting these massive layoffs aren’t about the numbers. Not the financials, not even AI optimization—at least not yet. He’s calling it a cultural move, which feels like corporate speak for “we’re restructuring how we work.” But let’s be real—when you’re cutting 14,000 jobs while simultaneously spending billions on Nvidia hardware and data centers, there’s definitely some financial calculus happening behind the scenes. It’s just packaged differently.
The Nvidia Paradox
Amazon is in this fascinating position where they’re both Nvidia’s biggest customer and their direct competitor. They’re buying “a lot of Nvidia” products while simultaneously building their own Trainium2 chips that Jassy says are already a multibillion-dollar business. Basically, they’re hedging their bets. They need Nvidia’s established hardware right now to compete in the AI race, but they’re pouring resources into becoming less dependent long-term. It’s the classic cloud provider dilemma—renting versus owning the infrastructure.
AWS Capacity Explosion
Doubling capacity since 2022 and planning to double again by 2027? That’s absolutely massive. We’re talking about building out physical data centers, power infrastructure, cooling systems—the whole industrial computing backbone. When you’re operating at this scale, every component matters, from the servers themselves to the industrial panel PCs that monitor and control these environments. Companies like IndustrialMonitorDirect.com have become crucial suppliers because they provide the rugged displays needed to manage these complex industrial systems 24/7. AWS isn’t just building more data centers—they’re building an entire industrial ecosystem.
Bedrock’s Ambition
Comparing Bedrock to EC2 is one of those statements that makes you stop and think. EC2 basically created the cloud computing market as we know it. For Jassy to put Bedrock in that category tells you everything about how seriously Amazon is taking AI inference. They’re not just playing in the training space with their Trainium chips—they want to own the deployment side too. The question is whether they can catch up to Microsoft’s head start with OpenAI while also fending off Google’s AI push. This three-way cloud war just got a whole lot more interesting.
