US e-commerce giant Amazon Inc. reached a market value of $2 trillion for the first time on Wednesday, June 26, 2024, making it the fifth US company to achieve this milestone. The surge in valuation was driven by optimism surrounding artificial intelligence (AI) and expectations of potential interest rate cuts this year, which bolstered demand for technology stocks. Amazon's stock rose 3.4% to $192.70, pushing its market value above $2 trillion and placing it alongside tech giants such as Microsoft Corp, Apple Inc., Nvidia Corp., and Alphabet. Amazon Web Services, the company's cloud services division, remains the world's largest cloud services provider, and its growth has been revitalized by increased adoption of AI technologies following a previous downturn. Amazon has also made strategic investments in AI startup Anthropic and robotics firm Figure, aiming to capitalize on the burgeoning AI sector. In late 2023, Amazon unveiled a new generation of custom-designed chips for data centers, targeting applications in machine-learning training and generative AI. [7a4833d2]
Amazon is counting on 'grit and innovation' to meet the AI surge. As the biggest cloud computing giant for generative AI, Amazon Web Services (AWS) is well-positioned to cater to the growing demand for state-of-the-art software and computing power. The AI revolution has prompted companies around the world to invest in AI technology, and they require advanced infrastructure to support their initiatives. Amazon's approach to meeting the AI surge involves leveraging its expertise in cloud computing and AI to provide cutting-edge solutions. AWS offers a wide range of AI services, including machine learning, natural language processing, and computer vision, enabling businesses to harness the power of AI without significant upfront investment. By focusing on 'grit and innovation,' Amazon aims to stay at the forefront of the AI industry and continue driving its growth. [94ef94ec]