The AI race created many fortunes and broke many milestones. Today, the history of another tech giant was made.
Amazon became the fifth company in history to break $2 trillion in market value amid an ever fiercer AI race. One Amazon stock currently trades at $181.08, bringing the total market capitalization to $2.01 trillion. That’s bigger than the entire Gross Domestic Product of Brazil, South America’s biggest economy.
The e-commerce giant joined Nvidia, Apple, Microsoft, and Alphabet in the $2 trillion cohort. Nvidia, Apple, and Microsoft are also the only companies in history valued at more than $3 trillion.
Amazon’s stock grew 33.89% year-to-date and almost 54% in one year. By comparison, the entire S&P 500 index jumped 15.50% year-to-date and 25.11% in the year-ago period.
Founder and chairman Jeff Bezos owns roughly 10% of Amazon, the company’s largest shareholder. His personal net worth grew $35 billion in 2024 alone, reaching a total of $209 billion. Bezos is the world’s second-richest person only behind Tesla CEO Elon Musk, whose net worth is estimated at $219 billion.
Current CEO Andy Jassy oversaw the company’s recent growth, posting an outstanding $143.3 billion gross revenue in Q1 2024, a 12.5% annual jump. The $10.43 billion net income, though smaller than its tech peers, still amounts to a 228.85% year-on-year increase.
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How did Amazon grow so much?
The main reason markets are awarding Amazon to such incredible levels is the company’s stance in the artificial intelligence (AI) race. It’s the same reason why Microsoft, Alphabet, and, most of all, Nvidia gained hundreds of billions in market value over the past 12 months. Nvidia in particular gained over $1.8 trillion in market capitalization this year alone, briefly becoming the world’s most-valued company.
It’s also the same reason why Apple’s stock is lagging behind rivals, although it started trailing Microsoft once again after the announcement of Apple Intelligence last month.
Since its founding in 1994, Amazon kept e-commerce as its core business. With time, however, it also became a technology giant, creating one of the world’s most popular cloud services.
Amazon Web Services is currently the only profit-making division at Amazon and is an integral part of the AI race. Amazon owns AI start-up Anthropic and released some AI-based software like Bedrock and Rufus.
Earlier this week, Business Insider reported that Amazon is working on a brand new generative AI chatbot. Named Metis, this LLM-based chatbot could reportedly rival OpenAI’s ChatGPT, the very software that launched the AI race in the first place.
Though not as successful as its rivals, Amazon is far from giving up its spot in the AI race. The technology is extremely new, and it’s still anybody’s game.
