The AI-related layoffs at Amazon and some other firms reflect a "hollowing out of middle-skilled workers," Lynn Wu, a professor of operations, information and decisions at the University of Pennsylvania, told ABC News.

Amazon.com Inc. posted robust cloud growth that reassured investors that the tens of billions of dollars the company and its peers are pouring into artificial intelligence will pay off.

Investors cheered the tech giant’s latest results showing that its huge investments in artificial intelligence are beginning to show returns.

The e-commerce giant said Amazon Web Services is growing at its fastest rate since 2022, driven by AI. Shares surged in after-hours trading.

The Wall Street Journal is reporting that the biggest firms in Silicon Valley have invested $400 billion into artificial intelligence technology just this year. Tech companies like Meta, Alphabet, Microsoft and Amazing are expected to increase their investment in AI next year.

The combination of announcements out of Amazon within the past week may speak to the growing influence of artificial intelligence as a workforce engine.

Amazon's cloud revenue rose at the fastest clip in nearly three years, helping the company forecast quarterly sales above estimates and driving its shares up 14% in after-market trading.

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