Amazon‘s $38 billion cloud deal with OpenAI marks a major endorsement for the e-commerce giant’s cloud business after recent setbacks, including ceding market share to rivals and an outage that disrupted large parts of the internet.
Amazon logo outside an Amazon warehouse in Manchester, Britain, October 28, 2025 – REUTERS/Phil Noble/File Photo
After years of leading the cloud computing industry with its highly profitable Amazon Web Services (AWS) business, Amazon has watched Microsoft and Alphabet’s Google snatch big-ticket contracts with their AI-steeped clouds. Its lead in the cloud market slipped to 29% as of September, from 34% a few months before ChatGPT was launched in 2022, according to data from Synergy Research Group.
Amazon was considered a laggard in the AI race by many investors because it was late to launch a flagship large language model and for failing to offer a consumer-facing chatbot like OpenAI’s ChatGPT. Recently, though, the company has ramped up spending on its AI efforts, and last month opened an $11 billion AI data centre in Indiana called Project Rainier, where startup Anthropic’s models are being trained using Amazon’s own Trainium chips.
Monday’s deal with OpenAI, a marquee customer, coupled with strong quarterly results last, suggests AWS is regaining momentum, analysts and investors said.
“While it is small relative to other deals OpenAI has made with other cloud providers, it represents a key first step in Amazon’s effort to partner with a company that is spending over a trillion dollars on computing power in the coming years,” said Mamta Valechha, analyst at Quilter Cheviot.
Amazon’s stock rose 5% after the deal to a record high after it traded little changed for most of the year, lagging the gains seen in other Big Tech stock that have surged on cloud-computing deals worth hundreds of billions of dollars with AI startups.
Microsoft last week disclosed a $250 billion OpenAI commitment for its Azure cloud services under a new arrangement that allowed OpenAI to restructure itself, while Oracle has signed a $300 billion deal with the startup. Google has a chip agreement worth tens of billions with Anthropic among other AI tie-ups.
Amazon’s efforts have in part been hampered by executive losses. A key vice president helping oversee generative AI development left for another company, Reuters reported in June. To stay competitive and fund the costly data centres needed to support the technology, CEO Andy Jassy has tried to cut through management layers and even installed an anonymous complaint line for identifying inefficiencies.
The company said last week it would reduce its corporate workforce by about 14,000 in one of its biggest layoffs. It is also spending more on AI, with its capital expenditure expected to total around $125 billion this year and more the year after. That is more than Alphabet’s planned outlay of up to $93 billion, and roughly in-line with what Wall Street expects Microsoft to spend this year.
Analysts said the OpenAI deal offers a credible path for Amazon to recoup its spending. Brian Pitz, an analyst at BMO Capital Markets, estimates that this may boost AWS’s backlog by about 20% in the fourth quarter ending December, from $200 billion as of September end.
“It clearly seems like they (Amazon) are finally in the flow of what is happening with these large language models versus before,” said William Lee, an investor at SuRo Capital that holds equity in OpenAI.
Everything is in place for the major innovation of Pitti Immagine’s Winter 2026 shows: the concurrent scheduling at Florence’s Fortezza da Basso of the events dedicated to childrenswear and yarns, with Pitti Bimbo 102 scheduled for January 21 and 22 and Pitti Filati running from January 21 to 23.
On the Top Floor of the Central Pavilion, Pitti Bimbo brings together more than 100 childrenswear brands, over 65% of which are from abroad. “This winter edition of Pitti, and the one next June, are very important for the fair, because we expect them to provide feedback- and we trust it will be a positive endorsement- of the new approach we have given to the exhibition offering, aligning it with the profound transformations in children’s clothing and accessories, which in recent seasons have accelerated at a very fast pace,” commented Raffaello Napoleone, CEO of Pitti Immagine. “The fragmentation of the production structure, the polarisation between luxury and fast fashion, the drastic downsizing of retail, not to mention regressive demographic trends and their effects on consumption models and volumes. It was inevitable that all this would completely call into question the entire international trade fair system, including our show. We do not hide the difficulties; the next steps are crucial, but Pitti Bimbo remains the most important event in Europe and the only champion of Italy’s industry in the sector- a high-quality, long-established industry. Reacting, innovating, and proposing effective meeting formats are our duty, and we are working on this with great determination.”
Interpreting the “Motion” theme of Pitti Immagine’s winter shows through the cute penguin Pitt, the star of the campaign created by Amedeo Piccione, the show will bring together on the Top Floor of the Central Pavilion all the facets of childrenswear: from the big names and leading brands that reinterpret adult fashion in mini-me form, to younger, pioneering research labels spanning fashion, design, toys, objects, and small furnishings.
Spanish brand Bobo Choses is a partner in The New Edit project.
During the show, Miniconf celebrates 35 years of Sarabanda with an art project that reinterprets the brand’s most iconic campaigns through a contemporary lens, spanning four decades of style and creativity with four works created by Casentino artist Elia Fiumicelli.
New for this edition is the debut of The New Edit, a project focused on contemporary childrenswear that pairs collections with special events and presentations, developed in collaboration with Spanish brand Bobo Choses, which leads the line-up alongside Cozmo, Grey Label, Maison Mangostan, Mini Rodini, PiuPiuChick, The Campamento, The New Society, Tangerine, and True Artist.
The Family Circle, the marketplace founded in Hamburg by Nadine Jung, once again brings to the fair a selection of lifestyle labels and emerging designers that combine quality, attention to materials, and a playful approach to style. The featured brands are 2StoriesKids, Alwero, Bygge, FabFabStickers, Holzwald, Igelkind, Kiko+ & gg, Little Who, and Organicera. In addition to individual stands in the Pitti Bimbo exhibition itinerary, The Family Circle curates a collective exhibition area dedicated to the latest trends, featuring the brands Ambosstoys, Cosy Roots, Routinchen, The Momence Club, and Yogitier.
Finally, Ama Gioconaturalmente, Italy’s leading distributor of brands specialising in kids & family lifestyle, presents a carefully curated selection of high-quality labels, perfect for supporting children’s growth and fulfilling their wishes: Hoppstar, Kids’ Concept, Oli&Carol, Play&Go, Petit Jour Paris / Maison Petit Jour, Quut, Scoot&Ride, Wild&Soft, Egmont Toys, We Are Gommu, and Trixie.
Turning to Pitti Filati, 103 companies are presenting their S/S 2027 collections, including many of the most important Italian and international spinning mills. In detail, there are 67 exhibitors in the Filati area (including nine from abroad: the UK, Japan, Turkey, China, Peru); 21 companies in the CustomEasy area (five from abroad: Japan, Romania, China); 10 exhibitors within the KnitClub area (three from abroad: Hong Kong, Japan, the US); and five companies in the Institutional Area (including one from Australia).
During the show, the Feel the Yarn knitwear contest returns, now in its 17th edition, showcasing the mood boards of 34 participants, selected from over 150 entries and paired with 34 spinning mills from the Feel the Yarn group.
The two shows have separate entrances, but childrenswear brands and designers also have the opportunity to visit Pitti Filati and its Spazio Ricerca to draw inspiration for their future collections.
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Chiara Baravalle is the new General Manager of Dsquared2.
Previously, Baravalle, who began her career in Silicon Valley after graduating from Stanford University, served as general manager at Elisabetta Franchi and as a management consultant at Bain & Company in the Fashion and Luxury division.
“We are thrilled to welcome Chiara to Dsquared2,” said the brand’s founders and creative directors Dean and Dan Caten. “Her strategic vision, operational expertise and hands-on leadership style make her an ideal partner to embark on the next chapter of the brand’s journey. 2026 marks the beginning of a new phase, focused on reactivating the brand and laying the foundations for sustainable growth. Chiara knows that brands are living systems, built on people, culture and clarity of purpose.”
Baravalle will be tasked with leading a strategic reset focused on strengthening the brand’s foundations, sharpening execution, and ensuring long-term growth. In particular, her goals will be to win over younger consumers and accelerate expansion in key markets.
“Dsquared2 is a bold and iconic brand that anticipated many of the product and marketing strategies that have since become industry standards. The dualism at the heart of Dsquared2- between Canadian utility and Italian tailoring, between pioneering spirit and irreverent sensuality, between two creative forces- feels more relevant than ever,” said Baravalle, commenting on her appointment.
“The AW26 fashion show was a powerful demonstration of Dean and Dan’s mastery of showmanship, while the product itself reflects their sartorial expertise. It is a pleasure to work with Dean and Dan, whose iconoclasm and sincerity set them apart in the industry, and whose life’s work it is an honour for us to carry into the future,” Baravalle said.
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Wales Bonner has launched its lookbook for Autumn Winter 2026, shot by Malick Bodian. Exploring the romance of harmony, Wales Bonner reimagines classic uniforms through a sensuous, poetic lens.
A look from ‘Morning Raga’ by Wales Bonner – Malick Bodian
Inspired by an elemental simplicity, Wales Bonner presents design classics including suits, polo silhouettes, top coats, and chore jackets, reimagined through the label’s signature European heritage meets Afro Atlantic lens, for its Autumn Winter 2026 collection ‘Morning Raga.’ Driven by the pursuit of harmony in modernist architectural traditions, both men’s and women’s looks feature nostalgic tailoring and a subtle blend of textures, from Italian wool and satin to leather and metal studs.
A poetic suit by Wales Bonner – Malick Bodian
“From early design ideals of purity to the bold vision of figures like Indian architect Balkrishna Doshi, the collection presents a wardrobe between the practical and the sensual,” the brand announced in a press release.
The almost liminal set was designed by Jabez Bartlett and looks were styled by Tom Guinness. Jonny Lu Studio’s art direction continued the dreamy atmosphere of the campaign as models cast by Rachel Chandler pose in contemplative stances.
Men’s and women’s looks from ‘Morning Raga’ – Malick Bodian
Grace Wales Bonner launched her eponymous label in 2014, following her graduation from Central Saint Martins in London, and she won the LVMH Young Designer Prize in 2016. Wales Bonner was named as Hermès’ creative director of menswear in October last year.