The FTC and 17 state attorneys general filed an antitrust suit against Amazon on Tuesday, alleging the company operates an illegal monopoly.
Amazon (AMZN) has made an investment in the AI firm Anthropic, announcing their willingness to commit up to $4 billion this morning. Anthropic will utilize Amazon's Web Services (AWS) along with their custom chips to facilitate the training and deployment of their AI models. SmartEye Deputy CEO, Dr. Rana el Kaliouby, sees this as a beneficial move for both Anthropic and Amazon, highlighting how it allows Amazon Web Services to partner with other companies and introduce Anthropic's technology to those already using Amazon's data services. "Amazon, like many other companies, was caught flat-footed by the release of ChatGPT back in November", Chris Callison-Burch, Associate Professor at the University of Pennsylvania’s School of Engineering, tells Yahoo Finance on AI investment trends, adding: "But, I think this is a really excellent strategic move that will help them catch up." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Shares of Amazon (NASDAQ: AMZN) were heading lower today as a number of macroeconomic factors seemed to weigh on the stock and the Federal Trade Commission and 17 states filed suit against Amazon over monopolistic behavior. The core of the FTC case is that "Amazon is a monopolist and it is exploiting its monopolies in ways that leave shoppers and sellers paying more for worse service," as FTC chair Lina Khan told reporters on Tuesday. First, stocks have been steadily sliding since last Wednesday, when the Federal Reserve projected that interest rates would stay high.