Amazon's Generative AI Ads

Amazon rolls out AI-powered image generation - Cloud and Digital Ads main gainers of the hype cycle.

Welcome Back,

This week we have magnificent seven earnings. Generative A.I. winners appear to be gaining marketshare in the Cloud and in digital advertising. 2023 has been a huge gold rush for Generative A.I. anticipation. This has led BigTech getting around $2.4 Trillion of a boost in stock prices and valuations.

While many Generative A.I. startups have been able to attract wild valuations and funding in this unique window, we know the main beneficiaries are what are now both growth and defensive plays known as the magnificent seven. If Microsoft won the first round of Cloud wars for A.I. revenue boosts, who will win the first round of Generative A.I. for advertising growth? It may just be Amazon.

Look at this post by the CEO of Amazon.

Amazon generated $10.68 billion from its ad services in the second quarter of 2023. I’m keen to see Earnings this week. Amazon is the greatest challenge to the duopoly of Google and Meta we’ve seen since the rise of ByteDance (the maker of TikTok). If Amazon can utilize Generative A.I. better than MEta, we have a brand new world for AI powering digital ads.

Advertising is set to become more important for the future of Apple, Microsoft, Netflix, Alibaba and others. The Cloud and Ads are the real cash cows of the future and if A.I. can make them grow faster, that’s the natural selection that truly matters in the 2020s. It’s not chatbots, it’s existing moats that’s the big deal.

The Monopoly Kingdoms of A.I.

The magnificent seven understand this. If in the Cloud we have AWS, Azure and Google Cloud, in Advertising we now have Google, Meta and Amazon.