Meta strikes a multi-year deal with Amazon and will use its Graviton processors for AI tasks.
Although GPUs still handle heavy AI computing, CPUs are back in favor because AI agents run everyday tasks more efficiently on them. This is increasing CPU demand.
Amazon’s Graviton is a central processing unit (CPU) rather than a graphics processing unit (GPU), the type of chip typically associated with AI workloads.
While companies still train and run their AI models on GPUs, CPUs have come back into vogue in data centers thanks to the rise of AI agents, or agentic AI, semi- or fully autonomous bots that can take actions on your behalf.
If it were a standalone business, he said, Amazon’s chip revenue would have a run rate of roughly $50 billion.
“There’s so much demand for our chips that it’s quite possible we’ll sell racks of them to third parties in the future,” Jassy said.
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Amazon reported a pretty good result, which clearly beat expectations. Growth was supported especially by cloud services, e-commerce, advertising, and AI-related services. AWS growth accelerated, which is reportedly an important sign, as the business is already massive and yet things are still picking up speed. Their own chips and developer tools also gained traction.
But, but… on the downside, free cash flow remained under pressure because Amazon is investing heavily in AI infrastructure, and this side of things will continue to weigh on investors’ minds.
It went well, but growth requires a lot of capital etc. And the result wasn’t anything particularly spectacular considering the big picture, even though expectations were beaten quite widely. 
https://x.com/StockMKTNewz/status/2049580157057249301
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Amazon is opening its shipping and warehousing network to other companies, beginning to compete directly with the likes of FedEx and UPS.
In the future, businesses can utilize Amazon’s ships, flights, and warehouses to move their products. Amazon’s goal is apparently to transform logistics from a mere expense into a new source of revenue. Large corporations, such as 3M and P&G, have already joined.
The move also takes a leaf out of Amazon’s cloud computing unit’s playbook — Amazon Web Services was launched in 2006 to revamp the company’s own IT infrastructure, and it later evolved into the world’s biggest cloud services provider.
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