The AI-related layoffs at Amazon and some other firms reflect a "hollowing out of middle-skilled workers," Lynn Wu, a professor of operations, information and decisions at the University of Pennsylvania, told ABC News.

Amazon.com Inc. posted robust cloud growth that reassured investors that the tens of billions of dollars the company and its peers are pouring into artificial intelligence will pay off.

Investors cheered the tech giant’s latest results showing that its huge investments in artificial intelligence are beginning to show returns.

The Wall Street Journal is reporting that the biggest firms in Silicon Valley have invested $400 billion into artificial intelligence technology just this year. Tech companies like Meta, Alphabet, Microsoft and Amazing are expected to increase their investment in AI next year.

Amazon posted higher fiscal third quarter profit and sales compared with a year ago, fueled by accelerating growth in its cloud computing business and strong spending by its customers looking for low prices at a time when inflation is resurging.

Project coming online last week beat Amazon competitors into the market, and total investment may eventually exceed $11 billion, county official says.

The e-commerce giant’s cloud-computing business has disappointed investors with its growth recently, but that appears to be changing.

Artificial intelligence is impacting the workforce. Now colleges are offering AI driven courses to prepare their students for the future.