Bloomberg Intelligence Podcast Summary

Episode: Amazon Soars on Fastest Cloud Growth in Years
Date: October 31, 2025
Hosts: Scarlet Fu, Paul Sweeney
Featured Guests: Anurag Rana (Bloomberg Intelligence, Senior Technology Analyst), Ryan Mallory (CEO of Flexential), Paul Hardart (NYU Stern)

Main Theme

The episode centers on Amazon’s record-breaking cloud business growth, the surging energy needs of data centers amid the AI boom, and the ongoing evolution in the cable/media industry. The discussion provides a detailed analysis of Amazon Web Services’ (AWS) performance, addresses the challenges of infrastructure supporting the AI revolution, and explores strategic options for legacy media companies.

Amazon’s Cloud Momentum and AI Play

AWS Growth Resurgence

• [01:39] Paul Sweeney brings attention to Amazon’s surging stock price, driven not by retail sales but by its cloud business—specifically AWS and its ties to AI.
• [02:12] Anurag Rana explains a change in sentiment:
  • Concerns: AWS was perceived as losing ground to Oracle, Google, and Microsoft, with declining capex and disappointing prior results.
  • Turnaround: “Finally, they came out yesterday. AWS acceleration. They were very confident about how it's going to do next year. Capex is going up, their chip business is doing well. So I think ... people should be happy with this,” — Anurag Rana [02:12]

Comparison to Competitors

• [03:00] Scarlet emphasizes AWS as the “OG of cloud computing,” noting rivals’ faster growth from a smaller base.
• [03:23] Anurag points out that although competitors excel in marketing, AWS remains dominant:
  • “AWS is so much bigger than everybody else, so much wider, much more entrenched with enterprises than any of the others ... the first growth phase of AI has been through ChatGPT and that product is hosted on Microsoft Azure ... [but] AWS is all about enterprising, adding more AI capabilities. And that growth cycle is only beginning.” — Anurag Rana [03:23]
  • AWS’s lack of a major consumer-facing AI product is contrasted with Microsoft Azure’s hosting of ChatGPT.

Cloud Outages and Multi-Cloud Futures

• [04:20] Scarlet asks about recent widespread AWS outages.
• [04:41] Anurag frames outages as a systemic risk for all cloud providers, likening them to power utilities:
  • “Every company, every enterprise is going to go out and have a backup cloud provider ... like they do in electricity. And I think that is going to add far more to the total addressable market of this important service.” — Anurag Rana [04:41]

AI Skepticism: The Bear Case

• [05:16] Paul Sweeney cues up the “definitive research report on AI” from BI and asks for the bear case.
• [05:39] Anurag outlines potential pitfalls:
  • Productivity gains may plateau; AI may become “just another tool.”
  • Large-scale spending ($500+ billion/year) on capacity is risky, especially with concentrated demand from players like OpenAI.
  • "If anyone stops spending for just a moment … that could have huge ramifications." — Scarlet Fu [06:38]
  • The sector demands constant vigilance: “Almost on a weekly basis, you have to track these things very carefully.” — Anurag Rana [05:39]

The Power Crunch: Data Centers & AI

Data Center Siting and Power Constraints

• [10:03] Transition to infrastructure, featuring Ryan Mallory (Flexential CEO), prompted by a story of a haunted house being converted to a data center.
• [10:24] Mallory explains Flexential’s platform: 42 data centers in 18 markets.
• [11:01] Paul references Mallory’s saying, “power availability is the new real estate.”
• [11:08] Mallory elaborates:
  • “Now it's really where is the power at?...In 2023 there was 176 terawatts...By 2028 there's going to be 580 terawatts." — Ryan Mallory [11:08]
  • Location is dictated by availability of transmission, not just land.

Regional Power Dynamics

• [12:21] Traditional hubs like N. Virginia and California are now “power constrained.”
• Growth is shifting to Oregon, Utah, Colorado, Texas, and North Carolina—markets previously overlooked.

Cooling Challenges: Water Use and Climate

• [13:07] Data center cooling needs have soared due to AI-driven, high-density compute workloads.
• [13:14] Traditional evaporative cooling is giving way to closed-loop liquid systems across chips/racks:
  • "Companies that are looking at operating at a 0 WUE or water use efficiency are really what's needed...so we don't become burdens on those local communities." — Ryan Mallory [13:14]
• [14:37] Climate change (e.g., New York’s flash floods) makes water resource planning and closed-loop approaches critical.

Nuclear as a Solution

• [15:06] Host promotes nuclear, especially Small Modular Reactors (SMRs).
• [15:17] Mallory is optimistic:
  • "SMRs are the future of the data center world, as is nuclear in general ... you can deploy anywhere from a 50 megawatt to 300 megawatt reactor in a small form factor ... but a 10 year permitting process is just not going to help anybody.” — Ryan Mallory [15:17]

Media Industry: Legacy Players Seek Scale

Warner Brothers Discovery: For Sale?

• [18:34] Shift to media, with Paul Sweeney and Scarlet Fu discussing the uncertain fate of legacy cable/media companies.
• [19:32] Guest Paul Hardart (NYU Stern):
  • Describes Warner Brothers Discovery’s tumultuous M&A history.
  • Ongoing attempts to “optimize the value for their shareholders,” with three recent bids increasing share price.
  • “Their job is to optimize the value for their shareholders. So I think they're trying to get the most value for what they have originally.” — Paul Hardart [19:32]

Value of IP and Scale

• [21:20] Discussion on Warner Bros. valuable intellectual property (e.g., “Friends,” “Game of Thrones”), and whether value is maximized by folding into a larger platform.
• [21:43] Hardart: Scale and a deep content library are crucial in the streaming age:
  • “You want to be one of those two or three streaming services that ... the family needs.” — Paul Hardart [21:43]

The M&A Game: Competitive Dynamics

• [23:05] Hardart points out a potential upside for Netflix or Comcast just by evaluating Warner Bros. assets:
  • “The benefit … is, first of all, you learn a lot about what your competitor is doing … There is a deal, right? ... You might also elevate the price for one of your competitors. It's you sort of, you know, you're sort of the skunk at the picnic a little bit.” — Paul Hardart [23:05]

Notable Quotes & Memorable Moments

• AWS’s Newfound Confidence:
  “Finally they came out yesterday. AWS acceleration…” — Anurag Rana [02:12]

• AI’s Uncertain ROI:
  “It's not going to lead to massive layoffs. It's like another tool you and I have. We have Excel, now we have ChatGPT…” — Anurag Rana [05:39]

• Power as Real Estate:
  “Now it's really where is the power at?...In 2023 there was 176 terawatts...By 2028 there's going to be 580 terawatts." — Ryan Mallory [11:08]

• Scale in Streaming:
  “You want to be one of those two or three streaming services that ... the family needs.” — Paul Hardart [21:43]

Key Timestamps

• 01:39-04:20 — Amazon’s cloud growth, competitive position, and AI strategies
• 04:20-06:38 — Cloud infrastructure risks, AI investment, and macro risks
• 10:03-15:17 — Data center power and water needs, regional trends, nuclear future
• 18:24-24:27 — Cable/media industry’s need for transformation and Warner Bros. M&A outlook

Episode Flow & Tone

• Analytical, with a focus on clear market and technical explanations.
• Occasional lighthearted banter (“haunted house data centers”, “if I tripped over a terawatt”).
• Deep dives from industry analysts and executives, balanced with big-picture strategic questions from hosts.

For Listeners

This episode provides a clear, engaging overview of huge structural shifts in cloud computing, the infrastructure necessary to power the AI boom, and the struggles facing traditional media. Essential listening for anyone interested in the business of technology, energy, and media.