Amazon's $13 Billion AI Bet Is Now Worth $190 Billion. Here's Why That Matters.
Amazon's investment is already showing up on its balance sheets.
Overview
Amazon (NASDAQ:AMZN) has world-class cloud computing and online retail businesses, but its investment in Anthropic is fast becoming one of its greatest assets. Amazon has invested $13 billion in the artificial intelligence start-up, but in its most recent regulatory filing, Amazon now values that investment at a whopping $190.4 billion.
That’s a 14.6x gain in Amazon’s stake, and it helped Amazon record $62.64 billion in net income for the second quarter, as Amazon was able to claim paper profits of $53.39 billion in non-operating income on its balance sheet.
Details
But the bigger story isn’t about Amazon’s accounting ledger. It's what the revaluation of Amazon’s investment says about Anthropic’s fast-growing value, and what that could mean for Amazon stock down the road.
Source
Originally published at www.fool.com.