Warren Buffett’s holding company has invested nearly $2 billion in Amazon (NASDAQ: AMZN), a company that is increasingly being recognized as a key player in artificial intelligence (AI). Currently, Amazon Web Services (AWS) contributes less than 20% of Amazon’s total sales but is the primary source of its operating profits, illustrating the growing importance of cloud infrastructure in AI development.
Amazon commands a 30% share of the global cloud market, positioning itself favorably amid an expected worldwide spending increase on AI to $632 billion by 2028, growing at 29% annually. With a market capitalization of $2.2 trillion, Amazon’s AWS division could surpass its e-commerce segment in significance over the next five years, potentially rivaling industry leaders like Nvidia in the AI market.
