Amazon.com Inc. achieved a market value of over $2 trillion for the first time during afternoon trading on Wednesday.
This increase in Amazon’s market valuation occurred shortly after Nvidia surpassed $3 trillion, briefly becoming the most valuable company on Wall Street. Nvidia’s chips are widely used in AI applications, contributing to its soaring valuation.
Amazon has been heavily investing in AI in response to the growing global interest in the technology. The company has primarily focused on developing business-oriented products, including AI models and a chatbot named Q, which is offered to businesses using Amazon’s cloud computing service, AWS.
In April, Amazon CEO Andy Jassy mentioned that AI capabilities have reignited the growth of AWS, putting it on track for $100 billion in annual revenue. The unit experienced a slowdown in growth last year due to companies reducing costs amidst high inflation.
Additionally, the tech giant has invested $4 billion in the San Francisco-based AI company Anthropic to work on foundation models that support generative AI systems. Amazon is also involved in creating and designing its own AI chips.
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