“AI doesn’t have to be expensive – and we’re proving it,” says CEO Andy Jassy.
Amazon’s AI ambitions are hitting hyperspeed. In his annual letter to shareholders, CEO Andy Jassy revealed that AWS revenue surged 19% year-over-year to $108 billion, driven by booming demand for generative AI infrastructure.
Amazon is building over 1,000 GenAI apps across Alexa+, AWS, e-commerce, and logistics — all powered by its new Nova models and custom Trainium2 chips, which offer up to 40% better price-performance than Nvidia’s GPU systems, according to Jassy.
“Most AI has been built on one chip provider — it’s pricey,” he said, taking a direct shot at Nvidia’s dominance.
Key Takeaways for Investors
- AWS’s AI revenue is now growing triple digits YoY and represents a multi-billion-dollar run rate.
- Amazon (AMZN) stock has rebounded more than 15% since January lows, outperforming the Nasdaq.
- Analysts are upgrading the stock, citing AWS’s expanding AI moat, Alexa’s relaunch as Alexa+, and long-term upside from Project Kuiper and custom silicon.
“AI will reinvent virtually every customer experience,” Jassy wrote. Amazon is betting big — and investors are buying in.
CEO Andy Jassy’s 2024 Letter to Shareholders:
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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