CNBC's MacKenzie Sigalos reports on news regarding Amazon.

Amazon Web Services has launched new AI-driven tools designed to help enterprise clients update legacy software systems that support mission-critical operations. The tools allow organizations to modernize their infrastructure for the AI era without the need for extensive code rewrites or hardware replacements. 

This rollout coincides with AWS and Google's introduction of a joint multi-cloud networking service, enabling companies to run workloads across both providers and reduce the risk of downtime. The announcements follow recent high-profile cloud outages and reflect a broader industry shift toward strengthening existing systems and building in redundancies, supported by Amazon's increased capital expenditures.

Amazon rolls out AI-powered tools to help customers update software

We've got a news alert on Amazon Web Services. Mackenzie Sagalos joining us now with more from San Francisco. What's going on, Mack? Hey there, Brian. So Amazon is rolling out new AI tools to help big customers update the old software that still runs a lot of mission-critical systems. This is all about making legacy infrastructure work for the AI era without having to rebuild their underlying code or rip out existing hardware. And this launch comes just a few hours after AWS and Google unveiled their first joint multi-cloud networking service, which lets big enterprises run key workloads across both clouds instead of betting everything on a single provider. It also helps those same companies better hedge against possible downtime in the event of any outages. Now, this all lands just days after the trading halt at the CME due to cloud disruption and after major outages at both AWS and Microsoft Azure in October, which have put more attention on how brittle the current setup can be. Really, the takeaway here is that the next leg of cloud growth is less about signing brand new customers and more so about shoring up the systems already in place so that they can stay online when something breaks. Guys? All right, so how do we read this as a longer term thing? Like, is this a, I never understand the ins and the outs of technology as much as you do, Mackenzie. What, is there a longer term readout here? I mean, think about what Amazon announced last Monday. $65 billion in fresh CapEx commitments. That's more than a 50% jump on their current annual CapEx spending. And what that signifies is that legacy infrastructure isn't quite there to support not just the new customer base, but specifically the new AI customers who are coming online. So that East Coast hub that went down in October, it was a part of what used to power traditional corporate customers, but now we're seeing a new kind of AI client come online, whether it's Anthropic, and of course, Amazon just signed with OpenAI. And the point here, this is about the fact that, one, they're building out fresh infrastructure, but in the meantime, they need to have redundancies built in. That's an industry term, basically talking about these backups, hence this partnership with Google Cloud.

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Breakdown