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Amazon Web Services (AWS) CEO Matt Garman delivers a keynote address during the AWS re:Invent conference in Las Vegas on Dec. 3, 2024.

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In 2022, Amazon introduced the Buy with Prime button, allowing premium subscribers to make purchases using their Amazon account even when shopping on other websites.

Now the company is bringing a similar concept to its cloud-computing business.

At its Reinvent conference in Las Vegas on Wednesday, Amazon Web Services said a new Buy with AWS button will be available for cloud software partners to embed on their sites as a way for customers to pay.

AWS is the leading provider of cloud infrastructure, ahead of Microsoft and Google, reeling in over $100 billion in revenue in the past four quarters. Prominent cloud software vendors like Databricks, Wiz and Workday run their products on top of AWS, as well as other clouds, and will now be able to sell services directly to users with AWS accounts via the new button. The checkout option will allow buyers to take advantage of Amazon discounts.

“The intention here is to increase customer loyalty and partner loyalty and, ultimately, win rates,” Matt Yanchyshyn, AWS’ vice president of marketplace and partner services, told CNBC in an interview.

For software companies, the only requirement is that they need to be selling their products through the AWS Marketplace. Amazon reduced fees to 3% or lower in some cases this year, after Microsoft and Google decreased their rates.

On the consumer side, Amazon has an estimated 180 million Prime subscribers in the U.S. The $139 annual subscription includes speedy shipping as well as two-hour grocery delivery and digital services like Prime Video and Amazon Music.

Retailers that want to take advantage of Prime’s massive customer base can pay a fee to add Buy with Prime to their site, and utilize Amazon’s fulfillment network when purchases are made using the button. Amazon said in September that Buy with Prime orders through merchants’ sites are up more than 45% this year from a year earlier.

Buy with AWS has one key difference in that it’s free for software companies to embed. Because the services are running on top of AWS, the purchases result in more revenue for Amazon.

AWS CEO Matt Garman: Generative AI offers huge opportunity to improve productivity

“Buy with Prime is a separate initiative, but we’re very close to that team and collaborate on technical implementation,” Yanchyshyn said. He added that, while “we definitely sort of trade notes on success,” Buy with AWS is “ultimately a very different use case.” 

Yanchyshyn said that Matt Garman, who was tapped to lead AWS earlier this year, is focused on making partners the center of the customer journey.

“It’s not lip service. He means it,” Yanchyshyn said.

Databricks has enjoyed a clean integration with Microsoft’s cloud since Microsoft started selling a service called Azure Databricks in 2018. Setting up Databricks on AWS has been more complicated, said David Meyer, senior vice president of product management at the data analytics software startup.

Buy with AWS should lead to a higher share of revenue coming from Amazon deployments, he said.

“We should really see an acceleration of people that go and use it on AWS, because it’s so easy,” Meyer said. “I would say that this will give AWS the advantage over other clouds, because AWS will be simpler than the other ones, much like historically Azure was simpler for Databricks.”

Workday plans to employ the button on its Adaptive Planning product, stemming from the $1.5 billion acquisition of Adaptive Insights in 2018. The company, which sells finance and human resources software, wants to see if procurement will be faster when buyers use the button and go through the AWS Marketplace.

“Can we get software in the hands of business users faster with this? That’s the theory that were testing with this capability,” said Matthew Brandt, Workday’s senior vice president of global partners.

Brandt said that if the evaluation goes well, Workday could use the button for more products.

“We have buyers who are not as familiar with us who are very familiar with AWS,” he said. “It validates Workday as a potential provider.”

Ed Anderson, a vice president at industry researcher Gartner, said he wouldn’t be surprised to see other cloud providers launch buy buttons for third-party websites.

“It’s generally all upside,” he said.

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Rocket Lab stock jumps 8%, building on strong two-month rally

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Rocket Lab stock jumps 8%, building on strong two-month rally

An Electron rocket launches the Baby Come Back mission from New Zealand on July 17, 2023.

Rocket Lab

Rocket Lab stock soared 8% Monday, building on a strong run fueled by space innovation.

Shares of the space infrastructure company have nearly doubled over the last two months following a slew of successful launches and a deal with the European Union.

The stock is up 63% year to date after surging nearly sixfold in 2024.

Last month, Rocket Lab announced a partnership with the European Space Agency to launch satellites for constellation navigation before December.

Rocket Lab also announced the successful launch of its 66th, 67th and 68th Electron rockets in June. The company successfully deployed two rockets from the same site in 48 hours.

Read more CNBC tech news

Rocket Lab competes with a growing list of companies in a maturing and increasingly competitive space industry with growing demand. Some of the main competitors in the sector include Elon Musk‘s SpaceX and Firefly Aerospace, which filed its prospectus to go public on Friday.

“For Electron, our little rocket, we’ve seen increased demand over the last couple of years and we’re not just launching single spacecraft — these are generally entire constellations for customers,” CEO Peter Beck told CNBC last month.

He said the company is producing a rocket every 15 days.

Beck, a New Zealand-native, founded the company in 2006. Since its debut on the Nasdaq in August 2021 through a merger with a special purpose acquisition company, the Long Beach, California-based company’s market value has swelled to more than $19 billion.

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Anthropic, Google, OpenAI and xAI granted up to $200 million for AI work from Defense Department

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Anthropic, Google, OpenAI and xAI granted up to 0 million for AI work from Defense Department

A view of the Pentagon on December 13, 2024, in Washington, DC. Home to the US Defense Department, the Pentagon is one of the world’s largest office buildings.

Daniel Slim | Afp | Getty Images

The U.S. Department of Defense on Monday said it’s granting contract awards of up to $200 million for artificial intelligence development at Anthropic, Google, OpenAI and xAI.

The DoD’s Chief Digital and Artificial Intelligence Office said the awards will help the agency accelerate its adoption of “advanced AI capabilities to address critical national security challenges.” The companies will work to develop AI agents across several mission areas at the agency.

“The adoption of AI is transforming the Department’s ability to support our warfighters and maintain strategic advantage over our adversaries,” Doug Matty, the DoD’s chief digital and AI officer, said in a release.

Elon Musk’s xAI also announced Grok for Government on Monday, which is a suite of products that make the company’s models available to U.S. government customers. The products are available through the General Services Administration (GSA) schedule, which allows federal government departments, agencies, or offices to purchase them, according to a post on X.

OpenAI was previously awarded a year-long $200 million contract from the DoD in 2024, shortly after it said it would collaborate with defense technology startup Anduril to deploy advanced AI systems for “national security missions.”

In June, the company launched OpenAI for Government for U.S. federal, state, and local government workers.

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Meta CEO Zuckerberg says first AI data supercluster will come online in 2026

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Meta CEO Zuckerberg says first AI data supercluster will come online in 2026

Meta CEO Mark Zuckerberg appears at the Meta Connect event in Menlo Park, California, on Sept. 25, 2024.

David Paul Morris | Bloomberg | Getty Images

Meta CEO Mark Zuckerberg on Monday said he plans to invest “hundreds of billions of dollars” into artificial intelligence compute infrastructure, and that Meta plans to bring its first supercluster online next year.

A supercluster is a large, complex computing network that’s designed to train advanced AI models and handle their workloads.

“Meta Superintelligence Labs will have industry-leading levels of compute and by far the greatest compute per researcher,” Zuckerberg wrote in a Facebook post on Monday. “I’m looking forward to working with the top researchers to advance the frontier!”

Zuckerberg said Meta’s first supercluster is called Prometheus, and that the company is building several other multi-gigawatt clusters. One cluster, called Hyperion, will be able to scale up to five gigawatts over several years, he said.

Read more CNBC tech news

Zuckerberg has been on a multibillion-dollar AI hiring spree in recent weeks, highlighted by a $14 billion investment in Scale AI. He announced a new organization in June called Meta Superintelligence Labs that’s made up of top AI researchers and engineers.

Zuckerberg had grown frustrated with Meta’s progress in AI, especially after the release of its Llama 4 AI models in April received a lukewarm response from developers. He is revamping Meta’s approach to better compete with rivals like OpenAI and Google.

“For our superintelligence effort, I’m focused on building the most elite and talent-dense team in the industry,” Zuckerberg wrote Monday.

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