The Trump administration is working through the US Federal Communications Commission on a proposed ban targeting newly made optical transceivers from China, according to Reuters. The measure is framed as a national security step meant to guard against malware insertion, data theft, and network disruption risks tied to equipment used in AI infrastructure and data centers. Reuters said the FCC is considering adding the products to its Covered List, extending recent US restrictions that had already touched drones, inverters, and humanoid robots. The report put pressure on Chinese suppliers that hold a large share of the global data-center optical module market, including Zhongji Innolight and Eoptolink. Zhongji Innolight’s global market share was cited at about 27%. China’s embassy in Washington responded by urging the US to stop what it called baseless accusations and warned that it would take necessary countermeasures if Chinese interests were harmed. US optical and networking names rallied after the report. In Tuesday trading, Lumentum rose nearly 9%, Coherent jumped 12%, and Applied Optoelectronics gained more than 19%. The market reaction reflected expectations that large US cloud providers such as Amazon AWS, Microsoft, Google, and Meta may need to accelerate a shift toward non-Chinese or US-aligned suppliers. The report also pointed to Taiwan-based Enablence Technologies and LuxNet as companies that could benefit if orders are redirected.

Amazon’s second-quarter results gave fresh momentum to the AI infrastructure theme, with the company’s market capitalization briefly topping $3 trillion after the report and its share price reaching a record high. According to the source article, Amazon Web Services posted 37% year-over-year revenue growth, its fastest pace in 18 quarters, while operating cash flow over the past 12 months rose 33%. The report also pointed to continued spending from other large technology companies. Microsoft said Azure revenue surpassed $100 billion, helping annual cloud revenue exceed $214 billion, while Alphabet announced a larger capital expenditure plan for next-generation infrastructure. Together, those figures were presented as a sign that major tech companies are still increasing investment in artificial intelligence. Against that backdrop, the article highlighted Credo Technology Group and Lumentum Holdings as two companies tied to high-speed connectivity and optical communications. It cited valuation and growth metrics for both firms, noting stronger demand for data transfer, networking components and optical links as AI workloads move deeper into cloud and hyperscale data center environments. The source framed the piece as market observation rather than investment advice.

Amazon Web Services CEO Matt Garman said customers are shifting from using the company’s infrastructure to train AI models toward embedding those models into their own business processes, a change that is driving higher demand for inference computing. Speaking on Monday, Garman said Amazon still sees some companies relying on large training clusters, but wider adoption and stronger model capabilities are pushing more businesses to bring inference workloads into production. He described the potential size of Amazon’s AI business as “very large” and said the company will keep raising capital spending to meet demand. Amazon, the world’s largest provider of rented computing capacity and data services, said last week that it now expects capital expenditures to reach $220 billion in 2026, up from an earlier forecast of $200 billion. The increase reflects higher prices for storage chips and other components needed for data centers.

Citi said in a July 31 research note that second-quarter data from Microsoft, Amazon, Google and Oracle is challenging a market narrative that heavy AI infrastructure spending would crush profit margins. The four cloud vendors posted a combined $103.8 billion in quarterly revenue, up 50% year over year, accelerating from 41% in the prior quarter. According to the note, revenue growth is now outpacing the rise in capital expenditures, suggesting that AI investment has moved beyond a pure cash-burn phase. Azure revenue growth accelerated to 43%, AWS to 37%, Google Cloud to 82%, and Oracle Cloud Infrastructure to 92%. Citi also highlighted improving monetization metrics, including AWS AI annualized revenue rising from $15 billion to $25 billion in one quarter and Google reporting token usage growth of 37.5% quarter over quarter to 22 billion per minute. The bank kept Buy ratings on Microsoft, Amazon, Google and Oracle, with price targets of $600, $350, $447 and $330, respectively. Citi argued that operating leverage is helping offset pressure from depreciation and expansion, while growing backlog at AWS, Google Cloud and Microsoft points to sustained AI demand and stronger revenue visibility in coming quarters.

Amazon reported second-quarter 2026 revenue of $200.606 billion on July 30, up 20% year over year, while operating income rose 43% to $27.46 billion. The company’s cloud unit, Amazon Web Services, generated $42.23 billion in revenue, up 36.7%, its fastest growth rate in nearly 18 quarters, with operating margin expanding to 39.4% from 32.9% a year earlier. CEO Andy Jassy said AWS AI services and the company’s in-house chip businesses, Trainium and Graviton, have each exceeded a $25 billion annualized revenue run rate and are still growing at triple-digit percentage rates. Net income climbed to $62.65 billion and earnings per share rose to $5.75 from $1.68 a year earlier. Amazon said the quarter included $53.4 billion in other income, mainly tied to valuation gains on its investment in Anthropic. The article estimated that excluding that one-off gain, core profit would have been roughly $21 billion to $23 billion, with EPS near $1.95. Over the trailing 12 months, operating cash flow reached $161.4 billion, but capital expenditures surged to $169 billion, pushing free cash flow to negative $7.6 billion from positive $18.2 billion a year earlier. Amazon also raised its full-year capital expenditure plan to $220 billion, with nearly all of the incremental spending directed to AI infrastructure.

According to a report cited by ChainCatcher and attributed to Jin10, Amazon CEO said the company can clearly see the prospect of strong financial returns from its spending on artificial intelligence and Amazon Web Services. The remark points directly to Amazon’s ongoing investment in AI and its cloud business, with the CEO framing those outlays as having visible return potential. No additional figures, timeline details, or business breakdowns were provided in the source text. The statement, as cited, focused on the financial outlook tied to spending in AI and AWS.

Amazon is scheduled to release its second-quarter 2026 earnings after the U.S. stock market closes, with investors watching both headline results and signals on AI-related spending. According to LSEG data, the market expects revenue of $196.47 billion and earnings per share of $1.82. Within that, Amazon Web Services is projected to generate $40.54 billion in revenue, while advertising revenue is expected to reach $19.43 billion. Attention is also centered on the company’s AI infrastructure buildout and whether management will adjust its full-year capital expenditure target. Amazon had previously maintained guidance for about $200 billion in capex for 2026. After Alphabet raised its own full-year capex outlook, several institutions now expect Amazon could also lift its spending target. Morgan Stanley, for its part, estimates Amazon’s capital expenditure will reach $218 billion this year and says AWS can sustain long-term growth, supported by partnerships including OpenAI and Anthropic, according to CNBC.

Prosecutors in São Paulo state have filed a public civil lawsuit against Tools for Humanity Corporation, the developer tied to World Network, and Amazon AWS Serviços Brasil, alleging the companies illegally collected iris biometric data from more than 400,000 people in exchange for financial compensation. The São Paulo Public Prosecutor’s Office is seeking at least R$240 million in collective moral damages, roughly $47 million, and is asking the court to permanently ban the practice of offering money for iris data. Prosecutor Patrícia Leitão also requested an injunction to preserve all records, metadata, contracts, and technical reports tied to the handling of the biometric information, while seeking clarity on which Amazon group entity actually hosted the data. The case builds on an earlier order from Brazil’s National Data Protection Authority, which on Jan. 24, 2025 told Tools for Humanity to stop offering cryptocurrency or other compensation for Brazilians’ iris scans, and on a 161-page São Paulo city council report that cited serious violations across data protection, consumer protection, and financial regulation.