Key Points
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Amazon is investing hundreds of millions of dollars in its AI business.
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It has a huge AI business on the AWS platform, and it also has a minority stake in Anthropic, maker of the Claude LLM.
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Amazon has a large and varied business outside of AI.
- 10 stocks we like better than Amazon ›
Is it too late to invest in the artificial intelligence (AI) revolution? According to the companies on top, it’s just getting started, and it has a long runway.
There are many ways to invest in AI today. If you’re looking for a great AI stock you can hold for the next five years (and longer), Amazon (NASDAQ: AMZN) is an excellent choice.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
An Amazon drone. Image source: Amazon.
AI plus more
Amazon might be more known for its e-commerce business than anything else, but its AI business is booming, and it’s investing hundreds of millions of dollars in developing the most competitive platform. Management said it would spend more in 2026 than the roughly $125 billion it’s spending in 2025.
The AI business is part of Amazon Web Services (AWS) cloud computing, and Amazon has a dominant position in the global cloud space, giving it a leg up. It claims to have the largest assortment of AI tools, and it keeps adding more. It also has a minority stake in generative AI company Anthropic, maker of the Claude large language model (LLM), giving it exposure to AI in a number of ways. It just launched Project Rainier, which it calls a “massive AI compute cluster” with almost 500,000 chips to drive Claude models.
AWS sales growth accelerated in the third quarter to 20% as more clients hopped on board, and as it launched more AI tools. It should remain a leader, if not the absolute leader, in the sector.
What I like about Amazon as a long-term AI investment is that AI isn’t its only game, and even though AI is likely to lead it forward for many years, it has a large and varied business.
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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.