Amazon Sees Agentic AI Customers Shaping Future Growth

Jeff Bezos’ early maxim for Amazon was clear: “We’re not competitor‑obsessed, we’re customer‑obsessed.” Over two decades, the definition of a customer has evolved from an online book buyer to a diverse group including home cooks, CTOs, marketers, and Alexa users. Now, Amazon is adding a new category: software agents that autonomously make purchasing decisions. On its second-quarter earnings call on July 31, 2025, CEO Andy Jassy highlighted that Amazon is designing products for these “non-human” customers who can hit “buy” without human intervention. This shift was a key focus amid strong retail trends, robust advertising revenue, and double-digit cloud growth.

Amazon’s Push into Agentic AI

Jassy confirmed Amazon’s ambition to lead in agentic AI development and infrastructure. Agentic AI systems can plan trips, reconcile invoices, write code, and require significant computing power. “As people have become excited about building agents, they’re realizing they lack the tools to build them,” Jassy said. “Customers are struggling with deploying agents into production in a secure and scalable way.” Amazon’s solution is pragmatic rather than flashy. In May, it open-sourced Strands, a toolkit for creating AI agents. Recently, it launched AgentCore, a serverless runtime described as “the industry’s first secure, scalable way to give agents memory, identity and observability.” This positions AWS not just as a training ground but as the operational home for enterprise AI agents.

Addressing Wall Street Concerns

Despite AWS facing competition from Microsoft and Google, which have high-profile partnerships with OpenAI and Anthropic, Jassy emphasized that the AI market is still in its infancy. “It is so early right now in AI … We have a very significant number of enterprises and start-ups running applications on AWS AI services,” he said, noting demand currently outpaces capacity. When asked about market share, Jassy said snapshots are “moments in time” and reiterated AWS’s leadership in security, service breadth, and reliability. He also noted that power availability, not chip supply, is the biggest bottleneck for expanding AI capacity, underscoring the importance of infrastructure like data centers and energy resources.

Alexa+ and Consumer AI

Amazon’s consumer-facing AI, Alexa+, is a generative AI upgrade currently in early access to millions of U.S. households. Jassy described it as “much more intelligent than her prior self,” capable of handling complex multi-step requests such as dimming lights, playing dinner music, and adjusting thermostats. User engagement has increased meaningfully, which could unlock new subscription or advertising revenue streams over time.

Financial Performance and Outlook

Amazon’s fundamentals remain strong. In Q2 2025, net sales rose 13% to $167.7 billion, with operating income up 31% to $19.2 billion. North American retail grew 11%, advertising revenue climbed 22% to $15.7 billion, and AWS grew 17.5%, reaching a $123 billion annualized run rate, though margins slipped slightly due to stock-based compensation and depreciation. Free cash flow declined to $18.2 billion over the past 12 months as Amazon invests heavily in data centers and custom AI chips like its Trainium processors. Capital expenditures are expected to remain steady in the second half of 2025. For Q3, Amazon projects revenue between $174 billion and $179.5 billion, implying high-single-digit to low-double-digit growth, with operating income forecasted between $15.5 billion and $20.5 billion.

The AI Opportunity Ahead

Asked about the longevity of the AI market opportunity, Jassy remarked, “How often do you have an opportunity that’s a $123‑billion annual‑revenue run rate where you can still say it’s early?” Amazon is betting that these agentic AI customers—software agents acting autonomously—will soon be significant contributors to its revenue growth.

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Frequently Asked Questions (FAQ)

Agentic AI and Amazon's Strategy

Q: What are agentic AI customers? A: Agentic AI customers are software agents that can autonomously make purchasing decisions and perform tasks without direct human intervention. Q: What is Amazon's role in agentic AI development? A: Amazon is actively developing infrastructure and tools for agentic AI, including open-sourcing toolkits like Strands and launching platforms like AgentCore to support the secure and scalable deployment of AI agents. Q: How does AgentCore benefit AI agents? A: AgentCore provides AI agents with essential capabilities such as memory, identity, and observability, enabling them to operate securely and at scale. Q: What are Amazon's key offerings for AI agent development? A: Amazon offers tools like Strands for creating AI agents and a serverless runtime called AgentCore for deploying them, positioning AWS as a key provider for enterprise AI agents. Q: What challenges are customers facing with agentic AI? A: Customers are reportedly struggling with the tools needed to build and deploy AI agents securely and at scale.

Consumer AI and Alexa+

Q: What is Alexa+? A: Alexa+ is Amazon's generative AI upgrade for its consumer-facing AI assistant, Alexa, designed to handle more complex and multi-step requests. Q: How has user engagement changed with Alexa+? A: User engagement with Alexa+ has reportedly increased meaningfully since its early access rollout.

Market and Financials

Q: What is Amazon's financial performance outlook? A: Amazon reported strong Q2 2025 financial results, with net sales up 13% and operating income up 31%, driven by retail, advertising, and cloud growth. Q: What are the primary bottlenecks for AI capacity expansion? A: According to CEO Andy Jassy, power availability, rather than chip supply, is the biggest bottleneck for expanding AI capacity. Q: How is Amazon investing in AI infrastructure? A: Amazon is investing heavily in data centers and custom AI chips, such as its Trainium processors, to support its AI initiatives. Q: What is Amazon's view on the AI market? A: Amazon believes the AI market is still in its early stages, with significant demand for its AI services, particularly within AWS.

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Crypto Market AI's Take

Amazon's strategic pivot towards supporting "non-human" customers through agentic AI underscores a significant trend in how businesses are leveraging artificial intelligence. This focus on enabling autonomous agents to make purchasing decisions aligns with the broader technological evolution we're tracking in the crypto space, where AI is increasingly integrated into trading strategies and market analysis. For instance, the development of AI-powered cryptocurrency trading bots is a direct parallel, aiming to automate and optimize financial operations. Amazon's investment in infrastructure like AgentCore can be seen as a foundational step for more sophisticated AI applications, which could eventually extend to decentralized finance (DeFi) protocols and smart contract automation in the blockchain ecosystem. The company's commitment to building the operational home for enterprise AI agents suggests a future where AI-driven entities will play a more substantial role in economic transactions.

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Source: Amazon Sees Agentic AI Customers Shaping Future Growth on July 31, 2025