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Amazon is out with its q1 earnings Revenue went up 133% to 143 billion and profits more than tripled to 10.4
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billion both exceeding wall Street's expectations AWS Amazon Cloud's Computing unit had a particularly strong
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quarter with Revenue up 177% and operating income rocketing 84% to 9.4 billion really strong numbers uh
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obviously Amazon wants to be a big player in AI cloud computing and other areas and um they have said AI over 30
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times on the earnings call they said it Amazon recently added another 2.5 billion to its anthropic investment
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that's their company they're backing like Microsoft's backing open AI uh anthropic is made up of people who left
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open AI essentially advertising sales were also up 24% fueled by uh that move to turn on ads for Prime video um so
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what what do you think they're doing I'm going to start first actually I think Andy jasse is is moving himself into the
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Sachin nadela Tim Cook position here I think it's very hard to run a company when you're not um the founder and
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especially with the founder still living um and so you you tend not to get out of
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the Shadows he has been there since a very young age um but he's starting to figure out how to run this place I think
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um I like him a lot better than Jeff bases I can tell you that as a person um but he's he obviously ran the AWS unit
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and brought it to really saved Amazon's butt creating that unit and he was the one doing it so I think he's sort of
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finding his way in in an interesting way he still faces enormous Regulatory and um Congressional investigations to the
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marketplace Etc but in general I think people are liking what they're doing around Ai and being very crisp but I
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don't know your thoughts if you want to be the CEO of a company typically what you typically the CEO is usually the
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person running the you know the most profitable operating units Andy ran the most profitable group with the big the
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best future and that is AWS and if you really look at Amazon I would argue is now essentially a cloud company with a
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really strong retail platform that they sell media against and the the it's not only I mean you want to talk about
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chocolate and peanut butter Cloud plus AI most companies are training their llms on one of three Cloud providers
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these guys are the only ones that have the money to make the sort of requisite Investments where you can basically rent
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your AI or train your own llms on their AI compatible cloud services so you not only have Cloud but you have ai enabled
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cloud with huge Moes because no one else can make these types of Investments Amazon Google and Microsoft have
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67% share of global cloud services um this is I mean this is the gift these these
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companies really the this quarter was about Cloud now the fear is that if AI if every company doesn't start
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scrambling to try and build their own frontend AI applications or figure out how AI can work in their business if
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there's any sort of check back these companies will feel that but these companies themselves don't believe that
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at all they continue to add unbel make unbelievable Investments to offer incredible opportunity it's like do you
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have a $100 million to build out your own AI infrastructure or do you want to rent ours well that's an easy one said
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99.99% of organizations around the world but this is now these companies are essentially their growth is really all
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about AI enabled cloud services it's just it really is interesting yeah I find it there's going to be three
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companies that's going to be you know you you called into mind what is how is Faceook going to monetize this and I
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would agree with you how are they going to monetize I think they'll make their businesses more efficient including
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advertising using Ai and their and the that that's how they're going to do it well um but it's it's really meta uh
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Microsoft and Amazon to me are the going to be the big players well not like that
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but if you look at Amazon alphabet Microsoft and meta in the face of growth that any S&P 500 company would kill for
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I mean they're growing like crazy and everyone's like God how do we grow like those guys and they they go back to the
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board and say okay if you want me to grow anything like these guys I need you to approve new hires new plant new
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property equipment but Amazon I think Andy Jesse is sort of coming onto his own everyone there was always those
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rumors that Jeff is coming back I someone said that to me last night I was like he's ABS [ __ ] AB did you look at
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these earnings and stuff like that you look at that thong he's not coming back he's not coming back he's not coming
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that's what I said I said look at those earnings give me a break look at those fillers in that thong Jesus Christ no
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but no no what I said is look at the earnings for this guy has he had a he had a rough batch and now I think he's
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getting his arms around it the the um the the Hollywood stuff is the least of his issues I mean I think they
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definitely had been Rocky in that area but you know they're they're working it with the with the ads and the you know
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they're very systemic systematic excuse me at um Amazon and you know they still face enormous regulatory challenges but
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in every earnings call the CEO there's a subtext of what they're saying but they're not saying and in this latest
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earnings call Andy was saying AI what do you think of me now [ __ ] right that's what he said cuz that's the
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kind of guy he is he's not like that at all what should they be doing right now they're doing the healthc care they're
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doing I don't know the exact same thing I I I don't think I mean AI look everyone everyone is zeroing in on the
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same thing all all the biggest players have said the fastest growing expenditure in history across uh
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corporations and to a lesser extent consumer is AI they need infrastructure and it's perfect for them the
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infrastructure cost cost so much money that there's only a few of us that can do it we'll all have our different
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versions of mozzarella mozzarella cheese but we will be the only Deli in town so we're just going to go hard at
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this and it'll increase our operating I mean they should do you know what they should do they should do absolutely
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nothing new they should stay focused on this all right well congratulations Annie Jesse