Amazon's layoffs are not about AI despite what people claim.

Amazon laid off 30,000 people today. The narrative is about AI replacing jobs. The reality is very different. And to be really precise about it, because it gets at corporate structure and finance and not really at AI, and the way you think. So when people think layoffs, they think the robots are doing the jobs now, and therefore we are having layoffs. No. The people who are doing the jobs are more stressed still at Amazon. But the AI automation story isn't actually hitting what is hitting those jobs and is related to AI is the cost of chips. So Nvidia sells chips to everyone. GPUs, those chips are how we power AI. And none of the major cloud providers can get enough chips right now. Microsoft can't, Google can't. Google's in an easier spot. They have TPUs. And Amazon definitely can't. In fact, people don't know this, but AWS has a roughly 25% burning backlog on GPUs. In other words, out on revenue because companies are begging for more. And Amazon definitely can't. In fact, people don't know this, but AWS has a roughly 25% burning backlog on GPUs. In other words, out on revenue because companies are begging for more.