Amazon (NASDAQ:AMZN) is doubling down on AI and infrastructure—raising some ML EC2 rates, building custom chips and Project Kuiper satellites, investing $1B in customer‑embedded AI teams, partnering with Anthropic, and expecting huge datacenter capex even as emissions and regulatory scrutiny rise.

Previous Week Recap

  • AWS EC2 Capacity Block Rates Increase: AMZN will raise July 1 hourly EC2 Capacity Block rates for ML GPU instances in U.S.: P6-B300 $14.04, P6-B200 $12.355, P5 $5.191, P5e $5.97, P5en $6.865; excludes On Demand/Savings Plans.
  • Jassy: Trainium Cuts Capex, Margins: Amazon CEO Andy Jassy says in-house AI chip Trainium can cut capex and boost margins, potentially saving tens of billions at scale. Next key event: Q2 earnings on July 30 for AMZN.
  • AWS Invests $1B For Embedding Teams: Amazon (AMZN) said AWS will invest $1B to launch a Forward Deployed Engineering unit to embed teams with clients for ~45-day AI deployments, hiring thousands and delivering production AI stacks.
  • Amazon Builds On-Device AI Chips: Amazon builds custom on-device AI chips (AZ3, AZ3 Pro) for Echo and Fire TV while still using third-party chips, aiming for tighter hardware-software integration and future portable AI devices.
  • Germany Bans Price Caps Enforcement: Germany's antitrust agency banned Amazon from enforcing price caps on third‑party sellers in its German marketplace and seeks disgorgement of profits tied to those pricing rules.
  • Kuiper Cone Launch Plan: Amazon will deploy Project Kuiper’s ~3,200-satellite LEO constellation via ~100 contracted launches across Atlas V, Vulcan, Ariane 6, Falcon 9 and New Glenn; some providers face delays and probes.
  • Anthropic Cloud Partnership Named: Amazon (AMZN) named a key infrastructure partner for Anthropic, set to provide cloud and support services enabling access to Anthropic’s latest AI model after U.S. ban lift.
  • Amazon To Lead Data-Center Capex: Amazon (AMZN) is expected to be a major participant in roughly $800 billion of global data-center capex in 2026, underscoring its continued AI and data-center investment focus.
  • No Shift To Token Pricing: Amazon denied reports that it shifted its Anthropic deal to token-based pricing. It said expanded collaboration won't raise its costs and reaffirmed the partnership's scope.
  • 2025 Emissions Rise 16%: Amazon (AMZN) reported ~81 million metric tons CO2e for 2025, up 16% year-over-year and 58% above 2019; electricity-related emissions rose 34% due to data center, AI and delivery growth.

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