Amazon Bets Big on Artificial Intelligence to Boost Profits

Amazon is investing heavily in artificial intelligence (AI) to boost its e-commerce and cloud computing businesses.

CEO Andy Jassy said the AI opportunity for Amazon Web Services could generate "tens of billions of dollars of revenue" in the next several years.

Amazon is investing in AI chips, services, and applications to serve all of its clients' AI needs through AWS.

AI services have much higher margins than Amazon's e-commerce business, so developing AI could greatly increase profits.

Amazon's early leadership in cloud computing positions it well to dominate in AI, as companies want to use AI services on their data stored with AWS.