Amazon takes charge on AI

Amazon, a member of the notable "Magnificent 7," has made a significant initiative in its efforts to improve artificial intelligence.

Amazon CEO Andy Jassy.

The chief executive officer of Amazon, Andy Jassy, sent a letter to shareholders promising billions in aid to its artificial intelligence technology initiative, citing concerns of stiff competition against rival technology companies that have also made AI investments. "If your mission is to make customers’ lives better and easier every day, and you believe every customer experience will be reinvented by AI, you’re going to invest deeply and broadly in AI," Jassy stated in his welcoming message. He asked investors to continue holding their capital in the company and even increase their investments of Amazon, especially when it has been undervalued, so that the company could have a larger investment pool to capitalize on the AI investment.

Amazon has, in recent years, taken a firm stance on AI: expansion. Over time, it has integrated artificial intelligence in its website, including its Prime system, and has funded AI integration in its technology systems, like Amazon Alexa. The stock, on the other hand, has fallen significantly as the AI movement shifted to other companies like Nvidia and Apple whose equally successful efforts garnered far more attention from investors.

Amazon stock rose 12% on Wednesday, but in the pre-market on Thursday, the stock fell down 2.2%. Overall, the stock fell from highs of low-200s to mid-100s. Therefore, a massive correction will need to take place with a key event opening the doors to one, in this case the letter from CEO Jassy.

Despite the letter being meant for its investors, it was also read by its competitors. Companies like Nvidia will need to adapt to rising competition from Amazon, possibly unleashing yet another series of days in which volatility plagues the bear market.