Thiel's Hedge Fund Puts Big Bet on Amazon Cloud Computing Dominance

Peter Thiel's hedge fund, Thiel Macro, has made a significant investment in Amazon, its largest stock purchase in the second quarter. This move is seen as a bet on the future of cloud computing, with AWS' growth rate continuing to accelerate.

The AI market needs more computing power, and Amazon is the world's No. 1 provider of cloud computing services. Thiel Macro purchased $118 million worth of Amazon shares, accounting for 28% of its portfolio. This investment is likely due to Amazon's expected spending of $220 billion on capital expenditures this year, most of which will go toward building data centers.

Amazon Web Services (AWS) revenue growth in the cloud unit accelerated to 37% in Q2, up from 28% in Q1. As more new data centers come online, this growth rate is expected to continue accelerating, sending Amazon's profits soaring.