AMZN
Amazon’s AI side quest is becoming the main plot
Amazon keeps leaning harder into Anthropic, and Wall Street is treating it like a fresh proof point that AWS can still be the adult in the AI room. The market likes the idea: more AI infrastructure demand, more chip spending, more reasons to believe Amazon’s cloud business can stay relevant in the arms race.
Great for growth, awkward for profits
Here’s the catch: AI doesn’t run on vibes. It runs on giant piles of cash, servers, chips, and electricity. So while the Anthropic partnership makes Amazon look smarter strategically, it also fuels the same profitability debate that hangs over every hyperscaler right now — how much are you spending today to maybe look brilliant tomorrow?
Why investors care
If you own the stock, this is the classic Amazon trade-off:
- Bull case: AWS gets more AI traffic, Amazon deepens a high-value partnership, and the company looks better positioned in next-gen cloud.
- Bear case: Margins get squeezed while the company keeps writing checks and filling data centers with very expensive silicon.
That’s why the stock can rally on the growth story and still leave investors squinting at the margin math like it’s a suspicious receipt.
Big picture: Amazon’s AI push is looking less like a side hustle and more like the operating system for its next act — but the market is going to keep asking who’s paying for the buffet.