Amazon's Strategic Moves: AI Investments, European Expansion, and Drone Delivery Approvals
1min read As of last week, Amazon (AMZN) experienced a slight dip of 0.89%. Over the past week, however, the stock rose by 5.18%, contributing to a year-to-date increase of 37.01%, with the latest market valuation standing at $2.189 trillion.
Recent reports suggest Amazon is contemplating another substantial investment in the generative AI startup Anthropic. Previously, Amazon invested $4 billion in Anthropic, and sources indicate that a subsequent investment could reach several billion dollars. This potential deal may require Anthropic to use servers powered by Amazon's AI chips, as opposed to their current reliance on Nvidia's technology.
Amazon introduced two new AI-focused chips, Graviton4 and Trainium2, in November 2023, underscoring its commitment to enhancing AI capabilities within its ecosystem.
Elsewhere, an administrative law judge from the National Labor Relations Board (NLRB) has ordered a third union election at Amazon's Alabama warehouse, following claims of the company's unlawful interference with union activities. This decision highlights ongoing labor unrest at Amazon, as allegations include removing union literature and intimidating pro-union employees before the 2022 vote in Bessemer, Alabama.
Despite previous election results being inconclusive due to legal challenges, the judge asserted that Amazon's actions compromised a fair election process. Amazon plans to appeal the decision, maintaining that employees have repeatedly shown no desire for union representation, while the Retail, Wholesale, and Department Store Union has expressed skepticism on achieving different outcomes without additional remedies in place.
Concurrently, Amazon is expanding its cloud computing footprint across Europe. AWS, Amazon's cloud division, announced plans to invest $1.3 billion in Italy over the next five years, aiming to bolster its data center operations in the region. This move is part of a broader strategy to enhance its cloud service offerings across Europe.
Further investments have been pledged by Amazon in other European countries, notably pledging billions in data center expansions in both Spain and Germany.
On another front, Amazon has secured regulatory approval for its drone delivery service, marking a significant progression in its long-term innovative project. The newly approved, quieter drone model, MK30, will operate over greater distances, including beyond the pilot's line of sight, beginning trials near Phoenix, Arizona.
This advancement follows challenges faced by Amazon's Prime Air initiative, including regulatory hurdles and restructuring efforts amid company-wide cost-cutting measures. As Amazon continues to refine its delivery technologies, it faces competition from companies like Google's Wing and UPS, among others.