Fast Five Shorts | Amazon To Invest $11 Billion Towards Ai In Georgia
In the latest edition of Omni Talk’s Retail Fast Five, sponsored by the A&M Consumer and Retail Group, Mirakl, Simbe, Ocampo Capital and Scratch Event DJs. Chris Walton and Anne Mezzenga discuss: Amazon Investing $11 Billion Towards Ai In Georgia
For the full episode head here: https://youtu.be/MHY9wOkZ0LI
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Transcript
According to Reuters, Amazon said last week that its cloud computing division, Amazon Web Services, plans to invest about $11 billion to expand its infrastructure in Georgia to support cloud computing and AI technologies.
Speaker A:Quote, the investments in Butts and Douglas counties are expected to create hundreds of jobs and enhance Georgia's position as a hub for cutting edge digital innovation.
Speaker A:End quote.
Speaker A:And yes, I'm still getting over Butts County.
Speaker A:How should the rest of retail.
Speaker B:How has that gone unknown?
Speaker B:I've never.
Speaker B:Did you know about Butts County?
Speaker B:I didn't know.
Speaker A:I mean this county, this is the.
Speaker B:This is the overtired, like three year old sense of humor right now coming out in me.
Speaker B:Where Butts County?
Speaker B:Who knew?
Speaker B:Okay.
Speaker B:I know you were asking me a very professional, important question.
Speaker A:I'm trying to keep this podcast classy.
Speaker A:And how should the rest of retail be reacting to Amazon's $11 billion AI investment in the Peach State?
Speaker B:I think everybody should be paying very close attention to this.
Speaker B:We heard in video their CEO was speaking at CES earlier, whatever week we're in right now.
Speaker B:And then we had a Martin on stage with John Furner here at nrf just talking about even more.
Speaker B:Like, we know Nvidia is huge.
Speaker B:We know that they're the key to all of the continuous AI development that's going to be happening.
Speaker B:But Chris, what they were showing on stage at nrf, it's just like it's even beyond I think what we can even comprehend.
Speaker B:So I think the fact that Amazon's investing $11 billion in continuing to bolster their AI capabilities especially, you know, everybody's got to get their piece and right now is the time that you got to be doing it because you know it, it's going to be impossible to catch up to people like Nvidia.
Speaker B:But if you're not doing anything to think about this, like you got to figure out how you're going to set yourself up for the structure or the foundation to have successful pieces in place to really succeed with AI.
Speaker B:Because there's, there's just no way that you cannot use this.
Speaker B:There's no way that if you are a technology company, you cannot be making these types of investments right now.
Speaker B:Especially the agentic A stuff.
Speaker B:Chris, like for those in our audience.
Speaker A:Yeah, explain what agentic AI this was a relative to interpret agentic AI.
Speaker B:Yeah.
Speaker B:So like I was telling you, like when, when we, you know who we were.
Speaker B:Oh, Keith, Keith Mercier from Target or from Microsoft.
Speaker B:On our podcast leading up to nrf, he was talking about agentic AI.
Speaker B:And I think that For a lot of people, that was like the first, kind of, the first place that we were hearing about it.
Speaker B:I, I immediately assumed agentic AI, like an agent, a call center agent, a bot that you're interacting with on the website.
Speaker B:Oh God no.
Speaker B:This was like Azita and John were on stage, they were showing like a complete transformation of a DC where agentic AI just basically means, in my understanding.
Speaker B:It's just these are the jobs that AI is doing a thousand times better than people and they are just going to catapult every single industry.
Speaker B:And so that's where the, this 11 billion dollar investment in Georgia, you're just like, yeah, this is the kind of money that we're going to have to be throwing at this.
Speaker B:This is kind of infrastructure we're going to have to be building for this to be successful.
Speaker B:It's, it's beyond what I think we can even comprehend right now.
Speaker A:Yeah.
Speaker A:Or said another way, all those inventory planning and allocation jobs that are the starting grounds.
Speaker B:Right.
Speaker A:Most retailers, those are going to become, you know, AI agents in the long run is basically what is how I would read into that.
Speaker A:Yeah, that what you just said.
Speaker A:So, I mean, and I don't have much to add here.
Speaker A:I mean I just thought of a way to put this in perspective for our audience.
Speaker A:11 billion, 11 in $11 billion investment is more than twice the market cap of Macy's which we just talked about.
Speaker A:Macy's market cap is $4 billion.
Speaker A:So $11 billion is more than twice the value of Macy's right now.
Speaker A:Yeah, that's the scale of the resources that we're talking about here with which Amazon has to win and forge its trail in the next generation of AI based commerce.
Speaker A:That's crazy when you think about it.
Speaker A:And so other retailers are not going to stand a chance.
Speaker A:So I'm a little more like doomsday tinfoil hat here and going to understand we used to use like three or four years ago because it's going to be impossible to keep up with them.
Speaker A:I'm not even sure Walmart can keep up with this, you know, at the end of the day.
Speaker A:So the only path I see here is that Amazon either gets bigger and bigger and puts more retailers out of business.
Speaker B:Right.
Speaker B:Yeah.
Speaker A:Or gobbles them up too, maybe acquires them, you know, who knows?
Speaker A:Or the government gets involved and breaks up aws.
Speaker A:Because the combination of those two is just making Amazon so powerful in this landscape that there's no way it's going to be a fair playing field, you know, with, with them being able to, you know, have that in their back pocket to dominate the space.
Speaker B:Yeah, that's a great point.
Speaker B:And not just Amazon.
Speaker B:I mean, you look at all of these companies like Nvidia even, like, I think there's going to be legislation changes that have to.
Speaker B:Because people like Nvidia, people like Amazon that have these deep pockets are investing so much money and being able to do, like, no one's going to be able to catch up with them.
Speaker B:It's impossible.
