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Capgemini CEO Criticizes EU’s AI Regulations as Too Restrictive

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Aiman Ezzat, CEO of Capgemini, expressed concerns that the European Union has overreached with its artificial intelligence regulations, making it more challenging for global companies to deploy AI in the region. In an interview, Ezzat highlighted the difficulties businesses face as they navigate different AI laws across multiple countries. His remarks come ahead of the AI Action Summit in Paris and amidst growing frustration from the private sector regarding AI regulations.

The EU’s AI Act, which is touted as the world’s most comprehensive AI law, has been criticized by some companies for stifling innovation. Ezzat commented, “In Europe, we went too far and too fast on AI regulation,” emphasizing that the absence of global AI standards has made the regulatory landscape increasingly complex.

Capgemini, one of Europe’s largest IT services firms, partners with major companies like Microsoft, Google Cloud, and Amazon Web Services (AWS), and serves clients such as Heathrow Airport and Deutsche Telekom. At the upcoming summit in Paris, AI policy frameworks are expected to be discussed, and Ezzat anticipates efforts to align global policy on AI.

While the AI Act won’t be fully implemented for several years, concerns have already arisen regarding privacy law violations by AI actors. Several European data protection authorities are reviewing DeepSeek, a Chinese startup that has drawn attention for its ability to compete with U.S. companies at a fraction of the cost. Despite DeepSeek’s open-source model, Ezzat noted its transparency limitations, such as the lack of access to the datasets used to train the models.

Capgemini is in the early stages of exploring the integration of DeepSeek’s models with clients, according to Ezzat.

Amazon Shares Drop as Cloud Growth Misses Expectations

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Amazon’s stock fell by 4% on Friday after the company’s quarterly cloud computing revenue growth fell short of investor expectations. The disappointing results reflected a slowdown in growth at Amazon Web Services (AWS), which posted a 19% increase in revenue to $28.79 billion. This figure was slightly below the anticipated $28.87 billion. The performance echoed similar disappointments from other major tech giants, including Microsoft and Alphabet, who also saw cloud revenue growth fail to meet expectations.

The missed expectations came as cloud companies, particularly those heavily investing in AI, are under greater scrutiny. AWS’s growth rate matched that of the previous quarter, raising concerns among analysts about potential capacity constraints or other unidentified issues.

The disappointing results led to a $100 billion drop in Amazon’s market value. However, Amazon’s stock has still risen about 4% in 2025, outpacing losses seen by Microsoft and Alphabet, whose stocks have fallen by 3%. Despite this drop, Amazon’s shares continue to be favored by analysts, with 68 recommending buying the stock and no analysts advising to sell.

Amazon’s Cloud Business Faces Crucial Test After Rivals Microsoft and Google Struggle

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Amazon is under intense pressure as it prepares to report its fourth-quarter results on Thursday, with high expectations surrounding its cloud business amid growing concerns over Big Tech’s investments in artificial intelligence (AI). After disappointing earnings from Microsoft and Google, which fueled investor concerns about the costs of AI, Amazon’s performance could be a pivotal moment in the tech sector.

Shares of major tech companies surged in recent years, driven by the belief that the AI boom and its massive data center needs would sustain growth. However, these expectations were rattled when DeepSeek, a Chinese AI startup, announced breakthroughs at a fraction of the cost, causing a selloff in tech stocks.

Despite these challenges, Amazon may be in a stronger position than its rivals, analysts say. Amazon Web Services (AWS), the world’s largest cloud services provider, is poised to report a 19.3% revenue growth, its highest increase in eight quarters. The company is also expected to benefit from its early embrace of DeepSeek’s AI models and plans to release its generative AI voice service, Alexa, later this month.

While Microsoft and Google face slowing cloud growth, Amazon has maintained optimism about its cloud business. Some analysts believe that Amazon has regained ground in the AI race, thanks to its increased investment in companies like Anthropic and a broad selection of AI models available through AWS. “We believe AWS is regaining share,” said Gil Luria, an analyst at D.A. Davidson, highlighting Amazon’s strength in AI despite initial slower growth compared to Microsoft and Google.

Amazon’s valuation remains higher than its competitors, with a forward price-to-earnings ratio of nearly 39, compared to Microsoft’s 29 and Alphabet’s 22.4. This strong position could help Amazon surpass market expectations and emerge as a leader in the AI-driven cloud market.

In addition to its cloud growth, Amazon is benefiting from a strong retail performance. Analysts expect Amazon’s North American sales to rise 9% in the fourth quarter, fueled by a successful holiday shopping season. Increased consumer spending, particularly in e-commerce, and Amazon’s expansion into groceries, pharmacy, and fashion are expected to propel its growth in the retail sector.

With a favorable holiday season and a competitive edge in AI, Amazon’s upcoming report could restore confidence in the tech giant, positioning it for long-term success.