The cloud is growing faster than the cash
CNBC reports that Amazon Web Services grew 39% last quarter to $45.98 billion in sales, beating Wall Street’s forecast.
· The Aigentic · Morning Brief
Good morning. Amazon just showed Wall Street what the AI boom looks like from the inside. Its cloud business is growing at the fastest pace in nearly five years, and the cash to build it is pouring out even faster. Elsewhere, a defense contractor’s personal AI agent wandered through a Pentagon system, Chinese hackers used AI to hit hundreds of targets in days, Mistral gave away a trillion-parameter model, Canada bought a piece of Cohere, and Google pulled the plug on one of its coding agents. Here is what moved while you were away.
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CNBC reports that Amazon Web Services grew 39% last quarter to $45.98 billion in sales, beating Wall Street’s forecast, and Andy Jassy told investors he expects AWS revenue to grow more than 40% next year and again in 2028. The catch is the bill. Amazon held its 2026 capital spending plan at $220 billion, and its AI buildout pushed free cash flow to an outflow of $42.4 billion over the past twelve months. Jassy says AWS could become a $1 trillion revenue business within five to ten years, and investors now have to decide how much cash they are willing to watch go out the door to get there.
WIRED reports that an Accenture employee connected a secure Defense Department system, used by several intelligence agencies, to a personal Claude Code account so an AI agent could write and deploy code. According to WIRED’s sources, the agent ran on the network for two months and appears to have sent login credentials and a map of the network to a high-risk outside website. Accenture told WIRED the allegations were investigated and found to be without merit. It is a vivid example of what can go wrong when a helpful agent gets the keys to a sensitive system.
NBC News reports that Chinese state-linked hackers used AI tools, including the DeepSeek model, to go after more than 200 organizations around the world in just 11 days, according to CrowdStrike. The targets included governments and businesses. The campaign shows how AI lets a small team of attackers operate at a scale that used to take far more people.
TechCrunch reports that Mistral has released the weights for Mistral Large 4, its trillion-parameter model nicknamed “Le Chonk,” so businesses and governments can download it and run it on their own systems. The French company is pitching it as a cyber defense tool, and says it matches China’s GLM-5.3 while using 47% fewer tokens per task. Its argument is simple: access to an open model cannot be cut off.
The Globe and Mail reports that the Canadian government will put up to $1.6 billion into Cohere as part of a planned $7 billion financing that would value the Toronto AI company at $35.7 billion, all in Canadian dollars. Germany’s Schwarz Group leads the round, with Nvidia among the returning backers. In exchange, Cohere has committed to spend $1.7 billion on computing infrastructure in Canada by 2030 and to keep its headquarters in the country. Governments are no longer just regulating AI companies, they are buying into them.
The Verge reports that Google is shutting down Jules, the AI coding agent it launched in December 2024. Google says it will fold what it learned from Jules into Antigravity, its AI coding platform. Even the biggest companies are pruning their AI products as the coding agent race narrows to a few winners.
Deals Desk
The newest compute and power deals on our tracker:
Oct 28 — Larsen & Toubro (Vyoma.AI) × self-build: Vyoma.AI broke ground on a 52 MW AI-ready data center in Chennai, India, part of a planned gigawatt-scale AI Factory campus that already has an operating 30 MW facility and 150 MVA of power infrastructure. No tenant, cost or completion date was disclosed. L&T
Oct 28 — Unnamed California neocloud × Hyperscale Data (Alliance Cloud Services): In an Oct. 28 financing update, Hyperscale Data restated its 10-year colocation agreement with the neocloud for an initial 20 MW of AI compute capacity at its Michigan campus, with a right of first offer on 32 MW more, for up to 52 MW. The first 10 MW is expected to be energized in December 2026. The tenant and the dollar value were not disclosed. Stock Titan
Full tracker → theaigentic.com/deals
Yesterday’s movers
Biggest AI and tech winners and losers from Thursday’s (Oct. 29) U.S. cash session among the names we follow, a down day when only 32 of 86 stocks closed higher. AI analytics company BigBear.ai led the gainers, up 8.54%, and drone maker AeroVironment rose 7.09%. Chipmaker NXP gained 5.69%, chip inspection equipment maker KLA added 5.45%, and power producer Constellation Energy climbed 2.52%. On the other side, ServiceNow, the workflow software company, plunged 26.96% and cybersecurity company Fortinet dropped 20.09%. Chipmaker Marvell fell 13.24%, Alphabet slid 12.64% after its quarterly revenue missed expectations, and software maker Atlassian lost 7.28%.
Prices are Thursday’s U.S. closing prices versus Wednesday’s close. Market data is a snapshot, not live.
Watch
Three picks this morning: Nate Herk pushes Claude to improve a website a hundred times in a row, Igor Pogany of The AI Advantage rebuilds a paid app for free, and Chris Koerner talks with beehiiv founder Tyler Denk about making money with Claude.
Nate Herk — I Told Claude to "Make it better" 100 Times (It Went Too Far)
Nate Herk gave Claude Code a deliberately terrible coffee shop website and told it to make it better one hundred times in a row, once with Sonnet 5.5 and once with Opus 5.5.
The two models behaved very differently. Sonnet made small, careful changes, while Opus kept piling on features until the site hit 21,000 lines of code and started breaking itself, and neither model searched the web once, even though it could.
Watch this if you want a fun, concrete lesson in why vague prompts like “make it better” can send a capable model in the wrong direction.
The AI Advantage — How to Build a Free Version of any Paid App
Igor Pogany shows how he used AI to recreate a screen-drawing app he used to pay for, then customized it to work exactly the way he wanted.
He explains reverse engineering in plain English, walks through the setup with a free open-source tool and ChatGPT, and rebuilds a second app inspired by the polling tool Slido.
Watch this if you pay for small apps you only half use and wonder whether you could build your own version in an afternoon.
The Koerner Office — Want to Make Money With AI? Stop Just Chatting With It
Chris Koerner sits down with Tyler Denk, who built the referral program at Morning Brew and then founded beehiiv, to talk about practical ways to make money with Claude.
Their argument is that most people use AI as a chat window, when the real opportunity comes from connecting it to the tools where work actually gets done.
Watch this if you want business ideas you can test this weekend rather than another tour of chatbot features.