Amazon's AI strategy is set to deliver a chip advantage: Morning Brief

Published On Sep 26, 2024, 6:00 AM

Amazon is tightening its remote work policy, requiring employees to return to the office five days a week as part of a strategy to strengthen company culture and optimize operations under new CEO Andy Jassy. The company aims to compete more effectively in the AI sector, particularly with its AWS cloud computing business, which has reportedly invested significantly to catch up with industry leader Microsoft. Amazon's ability to develop and deploy its own chips gives it a cost advantage over rivals that rely heavily on Nvidia's technology. Analysts believe this could position Amazon favorably against both Microsoft and Google, especially as the demand for AI services continues to grow. Moreover, Amazon's stock has shown substantial growth, increasing nearly 30% this year, as it prepares to unveil new AI products, enhancing its competitive stance in the tech market.