Amazon.com Inc. reached a market value of over $2 trillion for the first time during afternoon trading on Wednesday.
This increase in Amazon’s stock market valuation follows closely after Nvidia reached $3 trillion and briefly held the title of the most valuable company on Wall Street. Nvidia’s chips are essential for powering various AI applications, leading to a significant increase in its valuation.
Amazon has been heavily investing in AI technology as interest in this field has grown globally. The company’s focus primarily lies in developing business-oriented products, such as AI models and a chatbot named Q, which is accessible 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, with the unit on track to achieve $100 billion in annual revenue. The growth of this unit had slowed down last year due to companies cutting 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 also manufactures and designs its own AI chips.
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