Tag Archives: AMAZON

Hyperscaler AI Earnings Calls Today .(updated)

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Today will be interesting, we will learn how much large corps are going to play the shell game with earnings.

Amazon (AMZN) will report its first quarter earnings alongside rivals Google (GOOG, GOOGL), Meta (META), and Microsoft (MSFT) on Wednesday, with investors looking for more signs that the company’s massive artificial intelligence spending is paying off.

My personal feeling.. No. However this does not stop them from playing the shell game of hiding costs and contracts that have not been put to action yet. These companies account for 650 billion of cape ex spending.

The problem here is the market is betting the farm on a large loss leader. Big Tech knows this and they are trying to engineer there way through this problem by throwing more money and more power at it . AI as it stands right now is about as efficient as a 16 cylinder engine with only one sparkplug working. The problem is with AI being a subsidized land grab at the moment the scale is not fit for its current market. With A Slop being the top thing with AI right now and your average query to AI wasting enough power to light a lightbulb for months. In part why the Sam Altmans and the Bill Gates of the world looking for nuclear power plants to offset these cost to the of thousands of GWh of power.

Right now with power costs soaring, the cost per query is not sustainable, When your average British person can warm there tea 50 times over for a slop query. The problem here is the rate of return on LLM’s is degrading, as LLM’s are looking for more training data they are getting flooded with the very slop they are creating, The people now jailbreaking and hijacking AI’s to act like spongebob squarepants the sexy pirate is filling AI’s systems with irrelevant data to the point its becoming its own fever dream. So the 650B investment is poisoning the future well of returns.

For the quarter, Amazon is expected to report earnings per share (EPS) of $1.62 on revenue of $177.2 billion, according to Bloomberg analyst consensus estimates. The company saw earnings per share of $1.59 and revenue of $155.6 billion in Q1 last year.

Sure a revenue of 177.2 billion. but they are spending like they have a blank check. Eventually when that check clears will Amazon have enough in the bank to cover the check. When Returns on AI is only 15b the rate of return is much slower than the spending. They are building out now and hoping that the machine will have a return later or get bailed out in the end. We’ve heard this all before “too big to fail”. To any person that knows what that line means they just clenched their anus.

But in the end these calls will be interesting, If the earnings call shows a positive it shows that these companies are playing the shell game. Amazon is only getting 15b return per quarterly run shows that the math is flawed. To get that expensive back that will take 3.33 years, if Amazon stops investing today.

And the final flaw is , What if some other game changer comes out of a garage that has a home grown AI out of there garage that makes all these data centers look like nothing more than space heaters for towns. Deepseek has constantly outdone large llms for less than 5% of the money and that’s a secret that the hyperscalers hope you don’t see.

Anyways.. back to my morning coffee.

Quotes and attributions taken from: yahoo finance: Amazon Q1 earnings put the spotlight on AI spending and revenue

Post mortem: It would appear that all of the companies are posting strong numbers. How long this will last is the greatest question. Further is the biggest question. Metas numbers was the 8k layoff and 6k closed positions a part of there jump?

Every company beat there expectations, what does that mean to the little guy. Absolutely nothing. no lowered prices, it just means some CEO was able to light there cigar with a 100$ bill today.

Alphabet (GOOGL) $5.11 (Beat), Amazon (AMZN) $2.78 (Beat),Microsoft (MSFT) $4.13 (Beat), Meta (META) $6.71 (Est).

Rufus is failing upward.

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Rufus is burning through money Like a kid with a sparkler in a gunpowder factory.

Amazon CEO Jassy defends $200 billion AI spend: “We’re not going to be conservative”

With a $15 billion AI run rate, they might recoup their costs in 13.3 years. But lets be real, they are not counting the upward costs, They don’t account for the land cost, they don’t account for hardware failure. They are land rushing and hoping they hit it big. James Wilson Marshall is likely spinning in his grave.

This is a bad idea, most people do not realize that the Slopocalypse is happening. AI companies are starting for the exits because smoke is happening. Between Claude releasing its source code, Sora melting overnight.

Rufus is going to follow Sora and Claude , out of the 200 billion with the “lion’s share going toward AI development.” Horse shit, anyone who has used Rufus knows that rufus is a very basic AI that favors trying to get people to buy the most expensive products without going through your sales history.

In all honesty Rufus will be the litmus test for pushing bad AI, They are not a centralized platform like grok nor is the AI functional outside of being a bad salesman. Rufus does not do anything other than say “i see you are looking at socks how about these socks” as it shows a 50$ pair of socks. In the economy right now we can’t afford 50$ socks. “Independent audits from January 2026 show Rufus only matches the “objectively best” product 32% of the time”. When your basic function is to (sell product)..How are you are burning 200 Million on AI? Fuck that call Wendy’s and get there bad AI , its all the same. Rufus is a digital Vampire, It doesn’t do much but where do you think it is getting its training data. At this point lets all buy condoms to screw with the LLM learning data.

This is the 1849 goldrush for the 2026 era, as more people jump in to play the AI game, the corpses of other AI miners are dying fast. for every large AI that dies, Likely 100 more smaller ones die. The Slopocalypse is here, and while you could dig with your hands in the goldrush the 2026 game is pay to play. You need to have storage that is skyrocketing in cost, Land, and obscene amounts of power to run an AI farm while destroying everything around you. The AI Farms(mines) that fail are quickly bought up and run again until they fail too. What is likely happening as well is the AI farms that are failing are being bought up by bigger AI, the problem is THE ROI IS EXTREMELY NEGATIVE.

The idea of AI is nice on paper, but when culture is making AI SLOP videos of farts our trajectory is heading towards idiocracy. The biggest question is when slop is done is there any room for advancement or has the system inwardly corrupted itself into uselessness. The part that is failing in this industry is the scaling issue, if we need an answer to something and the answer is a hallucination, the fix is not to throw more processing power at it. It should come down to a code audit.

Because models are training on themselves the slop has become the AI’s TikTok doomscoll and with the Data of a shower thought fever dream being inputted into the AI the model now makes it real and therefore a training point. Google has put in its own immune system via SynthID.

Well, Given we are watching the Slopocalypsy in real time and people Slopocalypse coffeepots might cease to function, in the end it is we the consumers that are stuck with the bill because at the end of the day the bankrupt company walks away and the land rot infects the system.

I’m off to have a coffee from my smarter dumb coffee pot with buttons and switches and no internet connection, hopefully you do the same, its cheaper!

Final note: when your run numbers are 15b with a 200b expenditure, this is cleanroom spending. it does not account for failure and other associated costs.

Is amazon ok?

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Amazon has been weird lately, Just a bunch of things I have noticed .

For one amazon prime Video is getting weird. Not sure if this applies to everyone but, Watch a TV show on amazon… Rather than go to the next episode It returns you to the Amazon Prime Video screen, I thought it might of been a fluke in the amazon app. I tried the same thing on my samsung TV , Same thing happened! Loaded up a brand new firestick that i have for media sharing Same problem?

This alone may not have anyone going Hmmm but there are other things Amazon Resale has people complaining because of people order X and get Y. Other items are shipped and people are getting refunds and told to dispose of Item.

They also are heavily leveraged into AI and their Rufus is dumber than a brick. They are putting hundreds of billions into AI and are hemorrhaging money for this.. They are trying so bad to be next Facebook in a way by being Big Data and they do not know how to do it . Costs for their AI outwiegh there standard app approach. The way it is going Jeff Bezos might have to use low grade fuel for his plane.

Amazon is also hiding reviews from normal users and instead show compensated reviews. Compensated reviews are garbage because the only way to keep getting items is give a glowing review. I’d take 10 Honest reviews over a single review where the person received the item for free.. They are so badly losing their way that they are bleeding long time customers turned off by this approach. Amazon probably knows they are losing a small percentage of customers. They are over leveraged and I am willing to bet they dont know how to get back . but even month to month if they lose 0.25% customers , You don’t have a leak you have a crisis , because even in that small percentage they are losing “whales” people that are big spenders.

If you go by this metric it works out to big money and the more that leave would be catastrophic.

MetricRegular MemberThe “Whale” (Top Tier)
Est. Annual Spend$1,400$12,000+ (Business/Bulk)
0.25% Monthly Churn625,000 users / month~6,250 high-spenders / month
Annualized Users Lost7.5 Million Users75,000 “Whales”
Direct Revenue Loss$10.5 Billion / year$900 Million / year
Subscription Fee Loss$1.3 Billion (at $179/yr)(Included in revenue)

So right now Amazon is using an enshitification phase while they try to bet the house on Rufus. Rufus has the tact of getting a pickaxe to the skull. If you ask google it gives you what you want while Rufus throws shit at you and goes HERE THIS IS WHAT YOU BUY NOW! At a guess Amazon knows they are bleeding but they are so committed to their act that they are reducing everything just to keep the ship running. So piss away customers and hope they can profit. if amazon had incrimented the changes rather than try to use a grenade to empty a bucket people may have tolerated this. But even marketwise they are pissing away money , The stock is down 8.18% in the last 6 months.

While amazon serves better as the general store they are trying to get into a neiche market and they have no fucking clue how to do it because they seem to be trying a what can we replace while not realizing th e limitations on the new.

They’ve replaced the general store with a high-stakes AI experiment, and right now, the experiment is blowing up in everyones face like wile E coyote trying to catch a profitable roadrunner.

Anyways, back to my coffee after this steamy thought.

We need to talk about AI .

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AI chatbots are becoming a daily interaction and the problem is they are all shit. Amazon for example has RUFUS, While sounding cool in nature it is the most annoying AI known to man. it keeps bothering as over and over. it is like

The idea of RUFUS if asked for is one thing but this thing is the collective powers of the bothersome waiter , a nosey neighbor , a know it all and attempted know it all. if you type teva shoes it tries to show you all sorts of garbage even though i typed [Teva] [shoes] , Rufus pops out and overtakes about 20% the screen throwing irrelevant bullshit at you .

The thing is …. AI has no idea of timing. if i typed shoes ands went through 50 brands and it popped up than i might be more apt to recieve help from the Annoying bot. but it comes on the screen like its trying to throw shit off the table and goes “do you this or this or this or this or this or this or this or this or this or this or this or this or this or this or this or this or this or this or this or this or this or this or this or this or this or this or this or this or this or this or this or this or this or this or this!” and you immediately get overloaded with bullshit that you are not looking for . No matter what you tell rufus it does not go away. Even if you tell rufus you hate every fiber of its being and you would rather be waterboarded and have a hot poker stuff up your ass, it still does not go away. Amazon …. seriously you cant push an AI that has no tact and has the patience of a waiter that waits for the exact moment you take a bite of your food to ask if everything is ok.

AI should be a choice . Not be forced. not be invasive. not be brash . The AI boon is not , it will fail and eventually companies will force AI to be under a price point. Google is already at this point . they have fucked over their google home devices.

The AI boon is fucking over every consumer and most people do not realize this , when a computer has an “ai” chip they have done nothing to the chip to optimize it . in all likelihood you could get AI on a 486 chip however slow. The price of RAM and storage is going through the roof because companies are stealing every bit of data they get their hands on. If i copied anything like that they would go copyright infringement but they steal 99% of what’s out there.

When companies are sticking AI on everything they can as a sales point you know that for the most part AI is bullshit.