Major Outage at Amazon Disrupts Businesses Across the US

Amazon says it will invest $10 billion for its planned space-based internet delivery system. (AFP)
Amazon says it will invest $10 billion for its planned space-based internet delivery system. (AFP)
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Major Outage at Amazon Disrupts Businesses Across the US

Amazon says it will invest $10 billion for its planned space-based internet delivery system. (AFP)
Amazon says it will invest $10 billion for its planned space-based internet delivery system. (AFP)

A major outage in Amazon's cloud computing network Tuesday severely disrupted services at a wide range of US companies for more than five hours, the latest sign of just how concentrated the business of keeping the internet running has become.

The incident at Amazon Web Services mostly affected the eastern US, but still impacted everything from airline reservations and auto dealerships to payment apps and video streaming services to Amazon's own massive e-commerce operation. That included The Associated Press, whose publishing system was inoperable for much of the day, greatly limiting its ability to publish its news report.

Amazon has still said nothing about what, exactly, went wrong. In fact, the company limited its communications Tuesday to terse technical explanations on an AWS dashboard and a brief statement delivered via spokesperson Richard Rocha that acknowledged the outage had affected Amazon's own warehouse and delivery operation but said the company was “working to resolve the issue as quickly as possible," AP reported.

Roughly five hours after numerous companies and other organizations began reporting issues, the company said in a post on the AWS status page that it had “mitigated” the underlying problem responsible for the outage, which it did not describe. It took some affected companies hours more to thoroughly check their systems and restart their own services.

Amazon Web Services was formerly run by Amazon CEO Andy Jassy, who succeeded founder Jeff Bezos in July. The cloud-service operation is a huge profit center for Amazon. It holds roughly a third of the $152 billion market for cloud services, according to a report by Synergy Research — a larger share than its closest rivals, Microsoft and Google, combined.

To technologist and public data access activist Carl Malamud, the AWS outage highlights how much Big Tech has warped the internet, which was originally designed as a distributed and decentralized network intended to survive mass disasters such as nuclear attack.

“When we put everything in one place, be it Amazon’s cloud or Facebook’s monolith, we’re violating that fundamental principle,” said Malamud, who developed the internet’s first radio station and later put a vital US Securities and Exchange Commission database online. “We saw that when Facebook became the instrument of a massive disinformation campaign, we just saw that today with the Amazon failure.”

Widespread and often lengthy outages resulting from single-point failures appear increasingly common. In June, the behind-the-scenes content distributor Fastly suffered a failure that briefly took down dozens of major internet sites including CNN, The New York Times and Britain's government home page.

Then in October, Facebook — now known as Meta Platforms — blamed a “faulty configuration change” for an hours-long worldwide outage that took down Instagram and WhatsApp in addition to its titular platform.

This time, problems began midmorning on the US East Coast, said Doug Madory, director of internet analysis at Kentik Inc, a network intelligence firm. Netflix was one of the more prominent names affected; Kentik saw a 26% drop in traffic to the streaming service.

Customers trying to book or change trips with Delta Air Lines had trouble connecting to the airline. “Delta is working quickly to restore functionality to our AWS-supported phone lines,” said spokesperson Morgan Durrant. The airline apologized and encouraged customers to use its website or mobile app instead.

Dallas-based Southwest Airlines said it switched to West Coast servers after some airport-based systems were affected by the outage. Customers were still reporting outages to DownDetector, a popular clearinghouse for user outage reports, more than three hours after they started. Southwest spokesman Brian Parrish said there were no major disruptions to flights.

Toyota spokesman Scott Vazin said the company’s US East Region for dealer services went down. The company has apps that access inventory data, monthly payment calculators, service bulletins and other items. More than 20 apps were affected.

Also according to DownDetector, people trying to use Instacart, Venmo, Kindle, Roku, and Disney+ reported issues. The McDonald’s app was also down. But the airlines American, United, Alaska and JetBlue were unaffected.

Madory said he saw no reason to suspect nefarious activity. He said the recent cluster of major outages reflects how complex the networking industry has become. “More and more these outages end up being the product of automation and centralization of administration,” he said. “This ends up leading to outages that are hard to completely avoid due to operational complexity but are very impactful when they happen.”

It was unclear how, or whether, the outage was affecting the federal government. The US Cybersecurity and Infrastructure Security Agency said in an email response to questions that it was working with Amazon “to understand any potential impacts this outage may have for federal agencies or other partners.”



Trump Media to Merge with Nuclear Fusion Company that Wants to Power AI

FILE - The download screen for Truth Social app is seen on a laptop computer, March 20, 2024, in New York.  (AP Photo/John Minchillo, File)
FILE - The download screen for Truth Social app is seen on a laptop computer, March 20, 2024, in New York. (AP Photo/John Minchillo, File)
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Trump Media to Merge with Nuclear Fusion Company that Wants to Power AI

FILE - The download screen for Truth Social app is seen on a laptop computer, March 20, 2024, in New York.  (AP Photo/John Minchillo, File)
FILE - The download screen for Truth Social app is seen on a laptop computer, March 20, 2024, in New York. (AP Photo/John Minchillo, File)

Trump Media & Technology will merge with a fusion power company in an all-stock deal that the companies said Thursday is valued at more than $6 billion.

Devin Nunes, the Republican congressman who resigned in 2021 to become the CEO of Trump Media, will be co-CEO of the new company with TAE Technologies CEO Michl Binderbauer.

The combined company says it plans to find a site and begin construction next year on the “world’s first utility-scale fusion power plant,” with aims to provide the electricity needed for artificial intelligence.

Shares of Trump Media & Technology, the parent company of President Donald Trump's Truth Social media platform, have tumbled 70% this year but jumped 20% before the opening bell Thursday.

Backed by Google and other investors, TAE is a private company and the merger with Trump Media would create one of the first publicly traded nuclear fusion companies.

“We’re taking a big step forward toward a revolutionary technology that will cement America’s global energy dominance for generations," The Associated Press quoted Nunes as saying in a prepared statement.

TAE focuses on nuclear fusion, a technology that combines two light atomic nuclei to form a single heavier one. It releases enormous amount of energy, a process that occurs on the sun and other stars, according to the United Nations' International Atomic Energy Agency. It's been seen as a promising solution to climate change caused by burning fossil fuels, but one that is a long way off compared to today's clean technologies like wind and solar.

TAE and Trump Media shareholders will each own approximately 50% of the combined company.

Trump is by far the largest stakeholder in Trump Media, owning 41% of all outstanding shares.

In October, the US Department of Energy released what it called a “roadmap” for fusion technology, with the aim of fostering “a burgeoning fusion private sector industry in the US toward maturity on the most rapid timeline.”

A number of tech companies, including Google, Microsoft and OpenAI CEO Sam Altman, have shown interest in fusion technology as a way of powering the energy-hungry data centers needed to build and run their AI products.

TAE and Trump Media say the transaction values each TAE common stock at $53.89 per share.

At closing, Trump Media & Technology Group will be the holding company for Truth Social and TAE, along with its subsidiaries TAE Power Solutions and TAE Life Sciences.


Brazil to Get Satellite Internet from Chinese Rival to Starlink in 2026

Brazil's new Chief of Staff of the Presidency Rui Costa attends a ministerial meeting at the Planalto Palace in Brasilia, Brazil January 6, 2023. REUTERS/Adriano Machado
Brazil's new Chief of Staff of the Presidency Rui Costa attends a ministerial meeting at the Planalto Palace in Brasilia, Brazil January 6, 2023. REUTERS/Adriano Machado
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Brazil to Get Satellite Internet from Chinese Rival to Starlink in 2026

Brazil's new Chief of Staff of the Presidency Rui Costa attends a ministerial meeting at the Planalto Palace in Brasilia, Brazil January 6, 2023. REUTERS/Adriano Machado
Brazil's new Chief of Staff of the Presidency Rui Costa attends a ministerial meeting at the Planalto Palace in Brasilia, Brazil January 6, 2023. REUTERS/Adriano Machado

Chinese low Earth orbit satellite company SpaceSail will start providing internet access to remote areas in Brazil in the first half of 2026, President Luiz Inacio Lula da Silva's chief of staff, Rui Costa, said on Wednesday, Reuters reported.

SpaceSail and Brazil's state-owned telecom Telebras had signed a memorandum of understanding in late 2024 to offer satellite internet services for schools, hospitals and other essential services in the South American country.

SpaceSail competes directly with Elon Musk's Starlink in the satellite internet market.


Google Launches First Ever Co-branded Credit Card in India

FILE PHOTO: A Google logo is seen at a company research facility in Mountain View, California, US, May 13, 2025. REUTERS/Carlos Barria/File Photo
FILE PHOTO: A Google logo is seen at a company research facility in Mountain View, California, US, May 13, 2025. REUTERS/Carlos Barria/File Photo
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Google Launches First Ever Co-branded Credit Card in India

FILE PHOTO: A Google logo is seen at a company research facility in Mountain View, California, US, May 13, 2025. REUTERS/Carlos Barria/File Photo
FILE PHOTO: A Google logo is seen at a company research facility in Mountain View, California, US, May 13, 2025. REUTERS/Carlos Barria/File Photo

Alphabet Inc's Google Pay launched its first co-branded digital credit card in India on Wednesday in partnership with Axis Bank, intensifying efforts to monetize its massive user base in the country's crowded fintech sector.

WHY IT'S IMPORTANT

While Google Pay is a dominant player in India's popular domestic payments network, the Unified Payments Interface (UPI), its core service generates zero revenue from user-to-user payments due to government mandates. It, however, earns commissions for in-app services like bill payments and mobile recharges, Reuters reported.

The credit card launch opens a new avenue for Google to monetize its user base, mirroring strategies by domestic rivals Paytm and PhonePe to cross-sell lending products to payment users.

BY THE NUMBERS

India has just 50 million credit card holders, according to Google Pay, whereas its population exceeds 1.4 billion.

Google Pay meanwhile is the second top app in India by number of UPI transactions, having processed nearly 7.2 billion transactions in October alone.

HOW IT WORKS

Axis Bank manages the credit risk and issuance, while the digital-only card will be linked to the Google Pay app to make online and offline payments on the go.