AI News You Should Not Have Missed

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3. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 308    

Amazon.com, Inc. (NASDAQ:AMZN) engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally. Latest reports reveal that Amazon will power the latest updates to Alexa, the virtual assistant it has been marketing for years, with the AI model of Anthropic, a California-based AI startup. The reports indirectly reveal the failure of in-house AI models at Amazon, with some sources that spoke to news agency Reuters claiming that the in-house AI models of Amazon have lag times of six or seven seconds and problems with consistency and accuracy. The tech giant will charge $5 or $10 per month for advanced AI features in Alexa.

Following the latest earnings release, Amazon.com, Inc. (NASDAQ:AMZN) earned an Overweight rating at Morgan Stanley with a price target of $210. In an investor note, the advisory highlighted that the mix shift toward lower average selling price and lower margin items, combined with a slower than expected ramp in high-margin advertising and cost to serve improvements, was weighing on profits of the tech giant more than expected.

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