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Eight million users flag problems following AWS outage
AmazonAmazon(US:AMZN) Youtube·2025-10-20 23:38

Core Insights - Amazon's AWS is experiencing a significant outage that has lasted over 10 hours, affecting its main cloud region in Northern Virginia, which is its oldest and busiest hub [2][4] - More than 8 million users have reported issues, including major clients like AI platform Perplexity and Anthropic, which has a multicloud strategy to mitigate such risks [2][3] - AWS controls 37% of the global cloud market and generated $107 billion in revenue last year, highlighting the impact of its outages on global services [4] Outage Details - The outage began around 3:00 a.m. due to network failures and DNS issues related to its core database system, which is essential for many AWS applications [3] - Amazon has stated that it is in the process of rolling out fixes and some services are recovering, but outage reports continue to surge [4] - Cyber experts indicate that this outage is not a result of hacking but underscores the fragility of internet infrastructure when a few companies dominate it [4] Market Reaction - Despite the ongoing issues, Amazon's stock has traded 1% higher, suggesting that shareholders are currently unfazed by the outage [5] - The incident raises questions about whether customers will shift to other cloud providers, as seen with companies like OpenAI diversifying their cloud strategies [6][7] - Upcoming earnings reports from Google and Amazon will be closely watched to see if they increase capital expenditure commitments to support generative AI customers [7]