Amazon made history by surpassing $2 trillion in market value for the first time. The milestone was reached during afternoon trading on Wednesday, cementing the e-commerce giant’s position as a powerhouse in the tech industry.
This achievement comes shortly after Nvidia briefly took the lead as the most valuable company on Wall Street, hitting a market cap of $3 trillion. Nvidia’s dominance is attributed to the widespread use of its chips in powering AI applications, propelling its valuation to new heights.
Amazon has been actively investing in AI technology, particularly in business-focused products. The company has developed AI models and a chatbot named Q, which is offered to businesses utilizing its cloud computing arm, AWS. CEO Andy Jassy highlighted the significant role of AI in driving AWS’s growth, projecting annual revenue to reach $100 billion.
In a strategic move, Amazon allocated $4 billion to Anthropic, an AI company based in San Francisco, to advance the development of foundation models for generative AI systems. Additionally, Amazon has ventured into designing its own AI chips, further solidifying its position in the AI landscape.
Overall, Amazon’s foray into AI technology underscores its commitment to innovation and growth in a rapidly evolving market. As the company continues to expand its AI capabilities, it is poised to maintain its leadership position in the tech sector and drive further value for its shareholders.
