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Bezos is playing it smart: sell shovels to all of the gold diggers. If he partners with one of the gold diggers he won't be able to sell shovels to the remainde
by jacquesm 1y ago
Bezos is playing it smart: sell shovels to all of the gold diggers. If he partners with one of the gold diggers he won't be able to sell shovels to the remainder.
- aurareturn 11mo agoSure but check out Cisco's market cap vs Google, Amazon, Microsoft, Apple, Meta, Netflx, etc. A few gold diggers will be worth 10x the shovel maker.
- jacquesm 11mo agoThat's a risk-return issue. Bezos plays it safe within Amazon, and quite unsafe outside of that. By the time he acquires something from Amazon it is because it has proven long-term revenue generation and the shake-out period is done and consolidation is about to start. With AI the shake-out is still to come. So he can afford to wait to eventually acquire the winner or to copy it if he can't buy it. Having very deep pockets enables different business strategies.
- aurareturn 11mo agoYes, it is safe but Amazon will be surpassed by an AI company by 10x in the future if history repeats.