Old Maxim by Jeff Bezos Framed AmazonThe first days: “We are not obsessed with the competitor, we are obsessed with the customer.”
At the time, a “customer” meant an online book buyer. Two decades later, this constituency is sprawling. He goes from cooking to home by ordering spatulas, the director of technology who turns cloud servers, the director of marketing buying advertisements or the buyer speaking to a lecturer Alexa.
Since this quarter, there is another customer: software agents make decisions themselves.
On Amazon Profit call for the second quarter Thursday July 31, CEO Andy Jassy said the company now designs products for “non -human” customers who “hit” buy “without anyone in the loop”. This change dominated an appeal which, otherwise, could have been a standard victory tour: solid retail trends, a robust advertising company and two -digit cloud growth.
According to a index fallen during the Q1 gains The concerns about the architecture of agentic AI, Jassy confirmed that he wanted Amazon to be the leader in the development and infrastructure of agency AI. And not only can the agency plan a trip, reconcile invoices or the writing code, but it also burns by the computing power.
“While people are enthusiastic about the construction of agents, they realize that they do not have the tools to build them,” Jassy told analysts. “Customers find it difficult to deploy agents in production in a secure and evolutionary manner.”
Amazon’s response is a suite of plumbing rather than flash. In May, he opened “Shutters», A toolbox to create agents. Last week, she deployed “Agentcore“, A server -free execution jassy called” the first secure and evolutionary means of the industry to give the agents of memory, identity and observability “. The clear subtext: AWS aims to be the place where business agents live, not only where they train.
Difficult question
Wall Street still fears that Amazon continues Microsoft And Googlewhose links with OPENAI And Anthropic made the headlines. A call analyst confronted Jassy about a perceived lack of confidence of Wall Street in his cloud and AI strategy. Jassy’s replica was fast.
“It is so early at the moment in AI … We have a very large number of companies and start-ups performing applications on AWS AI services,” he said, adding that the company has “more demand than capacity at the moment”.
Questioned on the point if AWS loses a share, he said that the market snapshots are “moments in time” and argued that WS still leads to safety, extent of services and operational reliability.
Jassy said that the availability of power, not the chips, is now the greatest constraint to add the capacity of AI, a reminder that the real strangulation neck of the cloud lies in concrete, copper and kilowatts.
Amazon consumer automatic system East Alexa +An upgrade of Gen has now in early access to millions of American households. Jassy called her “much smarter than his previous self”, capable of spinning requests in several stages such as rotation lights, making a line of music for dinner and adjusting the thermostat. The commitment, he said, is “significantly” and, over time, could unlock new sources of subscription or advertising income.
Prices and metrics
The CEO also asked questions about the prices of us – China. So far, Amazon has not “seen a decrease in demand or prices appreciating significantly,” said Jassy, but he has warned that stocks purchased before tariff deadlines mask real costs. Who ultimately eats higher import bills – Amazon, its third -party sellers or consumers – “is always difficult to know,” he added.
All futurism is based on healthy bases. In the second trimester net sales increased by 13% to 167.7 billion dollars, while operating income jumped from 31% to 19.2 billion dollars. Retail trade in North America increased by 11% and advertising revenues increased by 22% to 15.7 billion dollars. AWS won growth of 17.5%, reaching a level of annualized rate of $ 123 billion, although its margin is slipped to 32.9% while remuneration and damping based on shares accelerated.
The cash flows available in the last 12 months were $ 18.2 billion, downwards, Amazon paid capital in personalized Data Centers and Puts from Trainium processors. The management expects capital expenditure levels to hold stable in the rear half of 2025. Amazon guided the revenues in the third quarter to $ 174 billion at $ 179.5 billion, which implies operational growth of $ 15.5 billion to a figure of $ 15.5 billion.
Asked how long the land terrain will last, Jassy has reached the scale: “How often do you have an opportunity which is an annual execution rate of $ 123 billion where you can still say that it is early?”
At first, perhaps, but Amazon bet that these non-human customers will soon spend real money.
