EP336 - Amazon Q4 Earnings

The Jason & Scot Show analyzes recent earnings calls from major tech companies—Microsoft, Meta, Google, and Amazon—to assess the state of AI investment and its impact on e-commerce and retail. The central question is whether the current AI boom constitutes a bubble. The discussion highlights massive capital expenditure plans by these companies, driven by capacity constraints and the need for more AI infrastructure. Amazon's retail growth, particularly in everyday essentials and grocery, is outpacing the industry average. The hosts debate the merits of horizontal versus vertical LLMs, questioning whether Amazon's focus on its vertical LLM, Rufus, is the right strategy in the face of increasingly capable horizontal AI agents.