Mumbai, June 27: Amazon Inc.'s market value crossed the $2 billion mark for the first time. The e-commerce giant has joined the race to become one of the companies with the highest market value in 2024. Last week, Nvidia became the company with the highest market valuation, leading the charts with $3.335 trillion, beating the second-runner Microsoft at $3.35 trillion and third-runner Apple at $3.327 trillion.

Amazon Inc. witnessed such growth in the market because it had been making significant AI investments following the rapid development of technology around the world. Amazon's AWS unit also focuses on the cloud computing while that ecommerce giant is involved in the AI models, according to a report by CBS News. The report said that Amazon Inc. focused on its business-oriented products, including artificial intelligence models and a chatbot known as 'Q'. Nvidia Overtakes Microsoft and Apple, Secures Top Spot As ‘Most Valuable Company in World’; Check Details.

Amazon CEO Andy Jassy stated in April about the accelerated growth witnessed by Amazon Web Services due to AI capabilities. He said that the unit was going on the path of earning $100 billion in annual revenue. However, due to the cost-cutting following the high inflation, AWS witnessed slow growth last year. Moreover, the e-commerce company, with the intention to develop a foundational model, invested $4 billion in Anthropic AI. The report highlighted that the foundational models were aimed underpin the genAI systems. Cloud Spending in India: About 81% Indian MSMEs Plan To Increase Spending on Cloud in 2025, Says Report.

Amazon has reportedly become the fifth largest company in the United States, surpassing the $2 trillion mark based on artificial intelligence. Companies like Nvidia, Microsoft, Apple, and Google are already on the list as companies with the highest valuations focused on AI and tech products. According to a report, robust gains had been recorded in the US stock indexes due to the enthusiasm built upon artificial intelligence. It also said that Amazon's AWS regained profits after witnessing a dip last year due to the adoption of artificial intelligence. The report also mentioned that potential interest rate cuts 2024 drove demand for technology-related stocks.

(The above story first appeared on LatestLY on Jun 27, 2024 02:47 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).