Spinning Off AWS Would Be the Dumbest Move Amazon Could Make. Here’s Why.
Wall Street’s fantasy of spinning off AWS ignores a brutal reality: Amazon’s retail empire is one of AWS’s largest customers, and the internal demand that inflates cloud profitability would evaporate the moment the two split. A spinoff wouldn’t unlock value — it would expose cost, kill the Annapurna Labs silicon advantage, and leave AWS naked against Microsoft and Google.