Amazon’s market capitalization has soared past $2 trillion as the company expands its reach into artificial intelligence. Following in the footsteps of Google’s parent company, Alphabet, Amazon’s shares increased by 4% to around $194 during midday trading on Wednesday, pushing its market value to over $2.02 trillion. This achievement places Amazon among the elite few companies, including Microsoft, Apple, and Nvidia, that boast the highest market capitalizations globally.
The e-commerce giant has experienced a nearly 30% surge in its shares this year, with its Amazon Web Services division seeing a 17% year-over-year sales growth in the first quarter, amounting to $25 billion. CEO Andy Jassy highlighted the growing excitement among AWS customers over the use of generative AI to enhance customer experiences and business operations. In line with this vision, Amazon made a significant investment of $2.75 billion in AI startup Anthropic, which builds AI security models utilizing AWS services like Trainium and Inference.
Jassy, in an annual letter to shareholders, expressed confidence that generative AI could usher in a transformative era, comparable to the impact of cloud computing and the Internet. He emphasized Amazon’s commitment to leveraging AWS to drive innovation and create seamless customer experiences. In line with this forward-looking approach, the company is reportedly developing an AI chatbot, code-named “Metis,” to compete with OpenAI’s ChatGPT. The chatbot, powered by Amazon’s internal AI model Olympus, is set to be accessible via web browsers, signaling Amazon’s continued focus on AI development.
With Amazon’s foray into various AI-driven initiatives, including investments in Anthropic and the development of an AI chatbot, the company is poised to capitalize on the immense opportunities presented by generative AI technologies. As Amazon’s market capitalization surges past $2 trillion, fueled by its expanding AI endeavors, the company remains at the forefront of technological innovation and customer-centric solutions.
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