Amazon Invests $500M in Nuclear Start-up, AWS Grows 24% With Oracle Tie-Up
Amazon invested $500M in X-energy’s Series C-1 round and pledged to buy up to 5GW of nuclear power by 2039 to fuel data centers and AI infrastructure. AWS revenue grew 24% last quarter as it expanded high-performance connectivity with Oracle Cloud, bolstering its multicloud offerings despite a $200B capex plan.
1. Nuclear Investment Fuels Data Center Infrastructure
Amazon backed X-energy’s upcoming IPO with a $500 million Series C-1 investment and committed to purchasing up to 5 gigawatts of nuclear-generated power by 2039. This move marks the largest energy diversification by the company, aimed at securing reliable, low-carbon power for its sprawling global data center and AI hardware network.
2. AWS Expands Multicloud Reach
AWS posted a 24% revenue increase last quarter and deepened its multicloud capabilities by rolling out high-performance connectivity with Oracle Cloud Infrastructure. The expanded integration allows customers to run applications seamlessly across both AWS and OCI environments, enhancing flexibility for AI workloads and data analytics.
3. Capex Plan Raises Financial Questions
Amazon’s plan to deploy roughly $200 billion in capital expenditures over the next few years has raised concerns about rising leverage and debt-service obligations. While the spending underpins growth in logistics, data centers, and technology, analysts warn it could pressure free cash flow and impact credit metrics if returns don’t align with projections.