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Amazon Stock Climbs 3.5% Amid Strategic Moves and Chip Solutions

Mover TrackerTuesday, Apr 22, 2025 6:56 pm ET

1min read

Amazon's stock rose by 3.50% on April 22, marking a significant increase amidst a competitive e-commerce landscape. The retail giant introduced Amazon Haul, focusing on budget-friendly products priced under $20, aiming to rival discount platforms Shein and Temu. Moreover, Amazon anticipates vigorous online shopping activity during its upcoming Black Friday and Cyber Monday events, scheduled for November 21 to December 2. Additionally, Amazon Web Services (AWS) is on the brink of sealing a $475 million deal with IBM, facilitating the usage of Nvidia processors for cloud services.

Facing a substantial challenge last year, Amazon's immense retail operations struggled with an insufficient supply of AI chips, crucial for its undertakings. As detailed in several internal documents, this shortage necessitated an extensive overhaul of processes and technologies within Amazon to remedy the situation. At the onset of 2024, employees within Amazon were impeded by the unavailability of GPUs, obstructing the timely rollout of projects across its retail sector, which encapsulates its e-commerce and robust logistical frameworks.

To counteract this, Amazon initiated the "Greenland Project" in July 2024, establishing a centralized GPU coordination platform to better manage and allocate its scarce GPU supply. Accompanying this was the tightening of approval protocols for internal GPU usage. The platform facilitates tracking of GPU usage by each project and recycles unused resources to allocate them for urgent necessities. Moreover, it simplifies network settings and provides security updates while alerting staff about underutilized GPU resources.

Amazon's employees are now mandated to channel all future GPU requests through the Greenland platform, aimed at elevating efficiency by reducing idle capacity and optimizing cluster utilization. This initiative has yielded positive results. By December 2024, internal forecasts anticipated alleviation in chip shortages by 2025, signaling an improvement in supply.

According to Amazon's spokesperson, through AWS, the retail division has secured complete access to artificial intelligence processors. The spokesperson added, "Amazon possesses a robust GPU capacity, ensuring ongoing innovation for both our retail operations and other clientele of the company." Despite the measures taken, there are still indications that Amazon remains cautious about GPU availability.

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