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