Investment talking head Jim Cramer has admitted to what he calls a "huge mistake on my part" on a recent broadcast of his show "Mad Money". The famous host has admitted that he missed the bigger picture when it comes to one of the biggest technology companies in the world.
"I was wrong about Amazon (AMZN)," Cramer says in a more somber voice than usual. "I thought Amazon was being left behind on the artificial intelligence front. I assume the winners here would be Microsoft (MSFT), Alphabet (GOOG), and Nvidia (NVDA). [Or] Meta (META) [now that it] has used AI to get around Apple's (AAPL) privacy rules in order to make its advertising more targeted."
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"Microsoft [has] invested $13 billion in OpenAI. That's the firm behind ChatGPT that could already be a home run," Cramer says of the current AI landscape. "Alpha has been playing catch up but it's looking like [Google] will become the go-to consultant for AI[...]"
"But I was way behind on what Amazon's doing here," he admitted. "For example, [...] a host of startups and garden agencies are using Amazon's machine learning for image recognition, forecasting, and intelligent speech (among other things) ... take a program called Amazon Bedrock. [...] It's like a marketing department," he says. And he's not wrong -- Bedrock utilizes AI to help sellers create features like customer service chatbots, AI-generated social media posts, and more.
Cramer also points out that Amazon isn't new in the AI game. "We've all known about Amazon's inference prowess for years. It's how they recommend things you might like based on what you've already bought," he explains. "But you might not know [is that Amazon uses] artificial intelligence computer vision and machine learning to help employees handle and sort customer packages before shipment."
"Why does it all matter?" he asks "Mad Money" viewers. "Because the most lucrative part of Amazon is advertising. It's a $14 billion business [...] Amazon will not be left behind by AI. It just didn't. It was first with a ton of this stuff and didn't even bother to trumpet it. They were embracing artificial intelligence where anyone cared, which is why they haven't gotten much credit."
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