The Pentagon has signed agreements with seven technology groups to deploy artificial intelligence tools across its classified networks to improve data analysis and support faster decision-making in military operations. The US War Department said companies, including Google (Alphabet Inc), OpenAI, Microsoft Corp (NASDAQ:MSFT) and Amazon.com Inc (NASDAQ:AMZN) AWS will provide systems for secure use in sensitive environments.
Shares of Rivian Automotive, Inc. fell sharply on Friday after the release of its latest quarterly results, as investors shifted focus from improving fundamentals to the company's growing reliance on a single customer and the uncertain ramp-up of its next-generation vehicle platform. The stock declined about 5.7% on Thursday.
The numbers behind the AI build-out have quietly crossed a threshold that should give every investor pause. Goldman Sachs strategists, in a note published this week, just put a hard figure on what the market has been treating as a vague “spending a lot” story.
Major tech stocks look a bit soft in general, but the recent action has been bullish. Perhaps a rest is in order?
Amazon.com, Inc. delivered robust Q1 results, with AWS revenue accelerating 28% y/y, reinforcing its ability to convert elevated AI spending into monetizable capacity. AWS backlog grew almost 50% Q/Q to $364 billion, further improving visibility into sustained demand and revenue acceleration over the next two years as incremental capacity is deployed. Looking ahead, OpenAI model integration should dilute Azure's prior competitive advantage, and support continued AWS Bedrock momentum and adjacent adoption of Trainium and Graviton.
Nvidia, Microsoft, Google, SpaceX, OpenAI, and Amazon will all serve as artificial-intelligence vendors for the Department of Defense.
Amazon (AMZN) delivered a standout Q1 report, crushing earnings and revenue estimates, driven by accelerating AWS growth and robust enterprise Cloud demand. AWS achieved 28% year-over-year revenue growth to $37.6B, with operating margins growing 23% and new hyperscaler agreements fueling momentum. Amazon's in-house AI chip business, now at a $20B revenue run-rate and triple-digit growth, positions AMZN for further Data Center market leadership.
Amazon (NASDAQ:AMZN | AMZN Price Prediction) currently trades at $263.99, while Wall Street's average price target sits at $283.79, implying about 7% upside from current levels.
On the latest Reuters Morning Bid podcast segment Powell era ends, hawks rise, the host flagged a milestone that sums up the entire 2026 market story: “the total spend now for 2026 from these big hyperscalers has now topped $700 billion.