{"id":109777,"date":"2025-08-01T08:28:12","date_gmt":"2025-08-01T08:28:12","guid":{"rendered":"https:\/\/www.europesays.com\/us\/109777\/"},"modified":"2025-08-01T08:28:12","modified_gmt":"2025-08-01T08:28:12","slug":"amazon-sees-agentic-ai-customers-shaping-future-growth","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/109777\/","title":{"rendered":"Amazon Sees Agentic AI Customers Shaping Future Growth"},"content":{"rendered":"

Jeff Bezos\u2019 old maxim framed Amazon<\/a>\u2019s earliest days: \u201cWe\u2019re not competitor\u2011obsessed, we\u2019re customer\u2011obsessed.\u201d<\/p>\n

Back then, a \u201ccustomer\u201d meant an online book buyer. Two decades later, that constituency is sprawling. It ranges from the home cook ordering spatulas, the chief technology officer spinning up cloud servers, the chief marketing officer buying ads or the shopper talking to an Alexa speaker. <\/p>\n

As of this quarter there\u2019s another customer: Software agents making decisions on their own.<\/p>\n

On Amazon\u2019s second\u2011quarter earnings call<\/a> on Thursday (July 31), CEO Andy\u202fJassy<\/a> said the company now designs products for \u201cnon\u2011human\u201d patrons that \u201cwill hit \u2018buy\u2019 without a person in the loop.\u201d That shift dominated a call that otherwise could have been a standard victory lap: solid retail trends, a sturdy ad business and double\u2011digit cloud growth.\u00a0<\/p>\n

Following up on a hint dropped during the Q1 earnings <\/a>concerns about agentic AI architecture, Jassy confirmed that he wants Amazon to be the leader in agentic AI development and infrastructure. And not only can agentic AI plan a trip, reconcile invoices or write code, it also burns through computing power. <\/p>\n

\u201cAs people have become excited about building agents, they\u2019re realizing they lack the tools to build them,\u201d Jassy told analysts. \u201cCustomers are struggling with deploying agents into production in a secure and scalable way.\u201d\u00a0<\/p>\n

Amazon\u2019s answer is a suite of plumbing rather than flash. In May, it open\u2011sourced \u201cStrands<\/a>,\u201d a toolkit for creating agents. Last week it rolled out \u201cAgentCore<\/a>,\u201d a server\u2011less runtime Jassy called \u201cthe industry\u2019s first secure, scalable way to give agents memory, identity and observability.\u201d The clear subtext: AWS aims to be the place where enterprise agents live, not merely where they train.<\/p>\n

Tough Question<\/p>\n

Wall Street still worries that Amazon is chasing Microsoft<\/a> and Google<\/a>, whose tie\u2011ups with OpenAI<\/a> and Anthropic<\/a> have hogged headlines. One analyst on the call confronted Jassy about a perceived lack of Wall Street confidence in his cloud and AI strategy. Jassy\u2019s retort was brisk. <\/p>\n

\u201cIt is so early right now in AI \u2026 We have a very significant number of enterprises and start\u2011ups running applications on AWS AI services,\u201d he said, adding that the company has \u201cmore demand than we have capacity right now.\u201d <\/p>\n

Asked point\u2011blank if AWS is losing share, he said market\u2011share snapshots are \u201cmoments in time\u201d and argued that AWS still leads on security, breadth of services and operational reliability.<\/p>\n

Jassy said power availability, not chips, is now the biggest constraint on adding AI capacity, a reminder that the cloud\u2019s real bottleneck lies in concrete, copper and kilowatts.<\/p>\n

Amazon\u2019s own consumer\u2011facing device<\/a> is Alexa+<\/a>, a Gen AI upgrade now in early access to millions of U.S. households. Jassy called it \u201cmuch more intelligent than her prior self,\u201d capable of stringing together multi\u2011step requests like dimming lights, queuing dinner music and adjusting the thermostat. Engagement, he said, is \u201cmeaningfully higher,\u201d and over time could unlock new subscription or advertising revenue streams.\u00a0<\/p>\n

Tariffs and Metrics <\/p>\n

The CEO also fielded questions about U.S.\u2013China tariffs. So far, Amazon hasn\u2019t \u201cseen diminished demand nor prices meaningfully appreciating,\u201d Jassy said, but he cautioned that inventories bought ahead of tariff deadlines are masking real costs. Who ultimately eats higher import bills \u2014 Amazon, its third\u2011party sellers or consumers \u2014 \u201cis still hard to know,\u201d he added.<\/p>\n

All the futurism rests on healthy basics. Second\u2011quarter net sales<\/a> rose 13% to\u00a0$167.7\u202fbillion, while operating income jumped 31% to\u00a0$19.2\u202fbillion. North America retail grew 11%, and advertising revenue climbed 22% to\u00a0$15.7\u202fbillion. AWS notched 17.5% growth, hitting a\u00a0$123\u202fbillion\u00a0annualized run\u2011rate, though its margin slipped to 32.9% as stock\u2011based compensation and depreciation ticked up.<\/p>\n

Free cash flow over the past 12 months was\u00a0$18.2\u202fbillion, down sharply as Amazon pours capital into data centers and custom AI chips such as its Trainium processors. Management expects capital\u2011expenditure levels to hold steady in the back half of 2025. Amazon guided third\u2011quarter revenue to\u00a0$174\u202fbillion\u2013$179.5\u202fbillion, implying high\u2011single\u2011digit to low\u2011double\u2011digit growth, and projected operating income of\u00a0$15.5\u202fbillion\u2013$20.5\u202fbillion. <\/p>\n

Asked how long the AI land\u2011grab will last, Jassy reached for scale: \u201cHow often do you have an opportunity that\u2019s a $123\u2011billion annual\u2011revenue run rate where you can still say it\u2019s early?\u201d <\/p>\n

Early days, perhaps, but Amazon is betting those non\u2011human customers will be spending real money soon.<\/p>\n","protected":false},"excerpt":{"rendered":"Jeff Bezos\u2019 old maxim framed Amazon\u2019s earliest days: \u201cWe\u2019re not competitor\u2011obsessed, we\u2019re customer\u2011obsessed.\u201d Back then, a \u201ccustomer\u201d meant…\n","protected":false},"author":3,"featured_media":109778,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[4487,691,2431,69902,738,10839,50,751,158,67,132,68],"class_list":{"0":"post-109777","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-agentic-ai","9":"tag-ai","10":"tag-amazon","11":"tag-andy-jassy","12":"tag-artificial-intelligence","13":"tag-digital-transformation","14":"tag-news","15":"tag-pymnts-news","16":"tag-technology","17":"tag-united-states","18":"tag-unitedstates","19":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/114952569053779684","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/109777","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=109777"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/109777\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/109778"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=109777"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=109777"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=109777"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}