Amazon (AMZN) - The Path to the Future of AI Will Boost Several Future Trends at Once!

The WSJ learned of Amazon's (AMZN) plans to invest $100 billion over the next ten years in AI and explicitly in the massive expansion of its data center infrastructure. Priority will now be given to investing in cloud and AI infrastructure, but also in building a global network of retail warehouses to further optimize the e-commerce business.

According to the WSJ, the company will now invest more in its cloud computing and AI infrastructure than in its retail warehouse network, as the AI and cloud business are proving to be significantly more important to Amazon's future growth. According to John Felton, CFO of Amazon Web Service (AWS), the investment in AI today is comparable to the early stages of building a huge delivery network in recent years as part of the e-commerce business. This is an appropriate comparison, as the data center (hardware) infrastructure mentioned forms the necessary basis for the massive roll-out of the global AI and cloud business in the coming decades. Amazon is therefore planning to build at least 215 new data centers over the next few years. In order to achieve this goal as cost-effectively as possible, the e-commerce and cloud giant is planning to connect its AI data centers directly to nuclear power plants. The company is thus gradually becoming an important driver of the US electrification trend that has recently been explicitly addressed.

At this point, it is reasonable to assume that the current output capacity of US nuclear power plants will no longer be sufficient in the coming years to cope with the coming US electricity explosion as a result of the US data center boom. This leads to the logical conclusion that the US electrification trend will have a very good foundation for growth in the coming years. Logically, the beneficiaries of this development would be US electricity suppliers such as Nextera Energy (NEE), electrical infrastructure providers such as Eaton (ETN), Hubbel (HUB), etc., but also uranium companies such as Cameco (CCJ), etc., as demand for uranium is also likely to increase noticeably in the coming years.

Amazon plans to launch a section on its website with low-priced items delivered directly from Chinese warehouses to foreign customers. The initiative will be the retail giant's response to the growing popularity of bargain sites such as Temu and Shein.

And so we conclude with the reasonable assumption that Amazon is on a promising path to massively expand its AI and cloud computing infrastructures. Planned investments of $100 billion over the next ten years and strategic partnerships with nuclear power plants to power its data centers also position the company as a leading driver of US electrification and reindustrialization trends.

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