Amazon (AMZN) shares have recently declined by 20% amid rising concerns over its $200 billion capital expenditure plan amidst recession fears driven by high oil prices. However, investors received positive news regarding Amazon’s ventures in artificial intelligence (AI) and robotaxis. In February, Amazon Web Services (AWS) expanded its partnership with OpenAI, investing $50 billion into the AI startup, which will utilize AWS’s cloud services for enhanced capabilities. This partnership includes the creation of a stateful runtime environment for applications that require persistent memory. Meanwhile, Amazon’s autonomous driving division, Zoox, is set to expand its services to Austin and Miami, building on its earlier successes in Las Vegas and San Francisco. Although Zoox lags behind competitors like Waymo in ridership, Morgan Stanley forecasts it will capture 12% of autonomous vehicle trips by 2032, potentially adding a significant revenue stream to Amazon’s diverse portfolio.
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