Citadel LLC CEO Ken Griffin has increased his stake in Amazon.com, Inc. This decision is based on Amazon’s growing prominence as a leader in AI (Artificial Intelligence) within the cloud and e-commerce platforms.
According to industry sources on the 10th, Griffin’s Citadel hedge fund has more than tripled its investment in Amazon.com, Inc. Citadel’s top 50 holdings are more than 50% invested in AI stocks.
Notably, Amazon was Citadel’s fourth-largest holding as of the end of last year. In the fourth quarter alone, Citadel purchased 4.32 million Amazon.com, Inc. shares, increasing its stake by nearly 227%.
Griffin has long been interested in Amazon. After initially investing in Amazon.com, Inc., in the second quarter of 2013, he sold off about 97% of his stake in the third quarter of the same year. However, he increased his stake again and sold all his shares in the fourth quarter of 2016.
Griffin bought back Amazon.com, Inc. shares in the first quarter of 2017 and increased his stake in Amazon.com, Inc. throughout the rest of the year.
Griffin made a substantial profit during this period. The share price of Amazon.com, Inc. soared over 200% during the first period it was included in the Citadel portfolio. After the second period, which began in the first quarter of 2017, increased by more than 300%.
When Griffin first bought Amazon.com, Inc. shares, he did not consider Amazon an AI stock. However, Amazon was already heavily investing in AI technology at the time. Amazon started implementing machine learning in its product recommendation feature on its e-commerce platform decades ago and launched Alexa, an AI-based virtual assistant, at the end of 2014.
Amazon.com, Inc. Web Services (AWS) launched the Amazon.com, Inc. Bedrock service last year to support businesses in quickly building generative AI apps in the cloud. Through Amazon.com, Inc. Bedrock, companies can access various AI models, including Anthropic and Cohere, Meta Platforms, Inc. Platforms, and Titan, Amazon.com, Inc.’s large-scale language model.
Amazon is one of Nvidia’s major customers, and it extensively uses graphic processing units (GPUs). It has also developed its own AI chip that offers attractive performance relative to its price. Earlier this year, it launched Rufus, an AI shopping assistant that interacts with customers and helps them find the best products to suit their needs.
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