The e-commerce giant’s cloud-computing business has disappointed investors with its growth recently, but that appears to be changing.

Welcome to Tech In Depth, our daily newsletter about the business of tech from Bloomberg’s journalists around the world. Today, Matt Day sizes up Amazon’s place in the changing cloud computing market.

A major outage last week disrupted Amazon's cloud division for 15 hours, affecting hundreds of companies and raising questions about AWS' resilience.

The tech giant says AI spending is set to reach up to $93 billion this year, which it can finance with profit from its advertising and cloud units.

Amazon posted higher fiscal third quarter profit and sales compared with a year ago, fueled by accelerating growth in its cloud computing business and strong spending by its customers looking for low prices at a time when inflation is resurging.

Microsoft's AI infrastructure spending to meet growing cloud services demand is outpacing Wall Street expectations, deepening investor fears about the costs of sustaining the boom.

Having a cloud loom over your business isn’t exactly a bad thing. We’re talking “cloud computing” here, which basically means storing and accessing data over the web instead of a computer’s hard drive. The cloud is a metaphor for the web.

Spectro Cloud, a Goldman Sachs–backed (NASDAQ:GS) startup valued at about $750 million, announced on Tuesday that it entered a strategic partnership with Nvidia (NASDAQ:NVDA) to address one of the biggest challenges in artificial intelligence: approximately 70% of computing power that often sits unused.

D-Wave, IonQ, and Rigetti are deeply unprofitable. Over the past year, the first two companies burned twice as much cash as they earned in revenue, and Rigetti burned six times as much cash. The other problem is their valuations. All three stocks trade at price-to-sales (PS) ratios that are nonsensical when compared to forecasted sales growth.