Aug. 26 at 6:46 PM
$AMZN This note/history of big tech trends suggests the highest margins will reverse from current right side below and flip to left side.
Until its big move to AI with Bedrock Token as a service(TaaS), AWS was squarely in the "Compute & Cloud" bucket(2nd from left below).
-Bedrock margins are 55% vs. 40% for the greater AWS so already true
-Bedrock has moved AWS ahead of Goog GCP/MSFT Azure in margin structure as their AI subset of cloud is just raw DC compute, chips to Anthropic and OpenAI
-Even more extreme in the neo-clouds like NBIS/CRWV/SPCX/Meta competing on raw iron(high margin now but only until GPU bottlenecks ease then it gets ugly)
**AWS is focused on "up the stack", closer to end-customer vs. raw iron commodity compute and its already showing up in the #'s.
