Amazon (AMZN +0.04%) has a reasonable chance of generating strong returns from its investments in AI.

Amazon says that Meta's Muse violates its terms of services. Meanwhile, retail platforms like Walmart, Shopify, and Best Buy have recently announced integrations with Muse.

Its AWS cloud service accounts for the vast majority of Amazon's profits. AWS is also growing substantially faster than Amazon's other divisions.

Amazon is making fast, free Prime delivery available beyond Amazon.com, giving merchants another way to use the company's logistics network to compete for online shoppers, according to a Thursday (Sept. 24) press release.

Amazon spent decades trying to make itself the place where merchants sell. Its next act may be considerably more ambitious: becoming the place where merchants run their businesses, regardless of where the sale happens.

New reports this week from The New York Times and NBC's TODAY show detail how residents in Richardson, Texas, — a Dallas suburb near a major Amazon fulfillment facility — are bearing the brunt of Prime Air's ambitious expansion.

Amazon's full-stack AI strategy drives AWS, chips, retail and ad growth, while Meta faces rising costs and legal uncertainties.

On September 21, an investor post that Chamath Palihapitiya amplified claimed Amazon had cut off Meta's new Muse shopping agent from scraping its inventory, with Palihapitiya responding that he suspected everyone would start blocking everyone.

AMZN is expanding agentic AI across seller tools, advertising and AWS, but heavy AI spending raises questions about when monetization will catch up.

AWS is booming, custom silicon is fully subscribed, and Wall Street has loaded up on buy ratings, but the real question is whether Amazon can clear a target that even the bulls have not fully priced in.