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.

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

Major tech firms Alphabet, Meta, Microsoft, and Amazon are boosting AI investments, projecting capital expenditures to exceed $380 billion this year. While Amazon and Alphabet saw stock gains, Meta's shares dropped amid concerns over its AI revenue potential and spending strategies.

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.

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.

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.

U.S. stock indexes rose on Friday, putting them on track to close October in the green, after Amazon's upbeat earnings forecast helped ease concerns over Big Tech's heavy spending on artificial intelligence.