Amazon (AMZN) reported fourth quarter earnings that beat analysts’ expectations Thursday and delivered an optimistic outlook for the months ahead.

The stock climbed 4% higher in extended trading.

Net sales came in at nearly $170 billion versus expectations of $166.2 billion. That’s higher than the almost $150 billion the company generated during the same period in the prior year. The outlook for the current quarter also surpassed forecasts, with the company estimating an upper range of $143.5 billion.

Here are some of Amazon’s most significant metrics compared to what Wall Street was expecting in the company’s fiscal fourth quarter, according to data from Bloomberg:

• Revenue: $169.9 billion vs. $166.2 billion expected ($149.2 billion in Q4 2022)

• Adjusted earnings per share: $1.00 vs $0.78 expected ($0.03 in Q4 2022)

• Amazon Web Services: $24.20 billion vs $24.22 billion expected ($21.4 billion in Q4 2022)

On Thursday the company unveiled a new shopping assistant dubbed Rufus, trained on Amazon’s product catalog and broader information from the web. The generative AI-powered tool can answer customer questions and recommend products on the Amazon mobile app. Amazon said a small subset of customers will initially be able to use the chatbot and then will widen its release to more users in the US.

Amazon’s results arrive just weeks after the company eliminated several hundred roles across Prime Video and MGM Studios and announced a major reduction in staff at its video game livestreaming platform, Twitch, laying off more than 500 people. Staff cuts across tech highlight the sector’s painful climb down from an era of rapid expansion, as companies are still resizing and retreating from ambitious investments made during the early stages of the pandemic.

Amazon sees the potential for AI development to generate tens of billions of dollars for its cloud business. AI tools require huge amounts of data and processing power to train and run large language models and their applications, relying on cloud providers to provide vital infrastructure.

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In September, the company launched its AI service, dubbed Amazon Bedrock, which allows customers to build generative AI applications through existing models offered by Anthropic, Stability AI, and Amazon itself.

That same month Amazon also said it would invest up to $4 billion in the AI startup Anthropic as the biggest players in tech scramble for positioning in what they see as the coming age of the technology.

Amazon Web Services, the biggest player in the cloud industry, claims about 30% of market share, followed by Microsoft (MSFT) Azure and Google (GOOG, GOOGL) Cloud. The trio collectively account for roughly two-thirds of the market.

Hamza Shaban is a reporter for Yahoo Finance covering markets and the economy. Follow Hamza on Twitter @hshaban.

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