➡ The Millionaire Morning Show w/ Anton Daniels is planning an exclusive livestream on Patreon to discuss AI tools they’ve been using and comparing. They’ve been exploring how AI can be practically used to make money and the direction society is heading with AI. They also discuss Amazon’s investment in AI, particularly physical AI, to automate logistics costs and improve their e-commerce business. The speaker believes that Amazon’s use of AI will not lead to layoffs but will replace jobs through natural attrition, increasing efficiency and margins.

➡ Amazon is investing heavily in robotics and AI to reduce costs and improve efficiency, which could lead to fewer jobs for humans. Despite concerns, the company believes this shift is inevitable, similar to past technological advancements like the internet and cloud computing. The use of robots, including those made in China, is primarily focused on fulfillment centers. The company is also exploring other forms of AI, promising discussions on how to leverage these advancements in various industries.

Talkin’ a lot about AI. We have a new livestream that we got comin’ up on the Patreon, so it’s gonna be a Patreon exclusive. And I’ma teach you guys what I’ve been using. I’ve spent the money so that you guys don’t have to. Right now, I think I’m paying $150 a month. Is it $150 a month? It’s supposed to go up to $250 a month for Google’s Ultra. I’ve been comparing it. I also pay for chat GBT. And so I’ve been comparing it to and then I’ve been looking at other AI tools.

I’ve been building certain things and I’ve been playing with it for a while now. And so I did it so you don’t have to. And I’ma deep dive into it and show y’all how y’all can practically use it to level up and where the direction of society is going and how you can make money from it. Because let’s be clear. It all comes back down to the money. But recently, I’ve been doing livestreams and I’ve been having conversations about the downfalls of AI, the benefits and also the downfalls and where I see the industry going, what jobs is going to replace.

But Amazon in particular is making a huge bet on physical, physical AI. Not just the apps, not just the prompts, but the physical aspects of how we can implement AI into society. And this is what they had to say about it. Make sure you guys hit a like for the algorithm, subscribe to the channel and turn on your notifications. Morgan Stanley’s out with a new note today and calling Amazon an underappreciated Gen I Gen AI winner, citing its investments in automating $200 billion in logistics costs. Those dollars could have a major impact for Amazon’s core e-commerce business.

OK, Rooney’s here with more for today’s tech check. They have been active this week, Kate. Yeah, Carl, some news this week, but from the beginning of the big tech AI race, if you think about it, Amazon CEO Andy Jassy has really argued that this technology is going to help their business internally. He said at certain points, they’re not just competing here because it’s cool and because it’s the newest buzzword. We are seeing some more proof of that strategy is AI now emerges as a way to keep costs down within Amazon’s giant e-commerce business.

So in part, they’re using robots in Silicon Valley. This is often known as physical AI. And then they’re also streamlining that supply chain. Amazon does need this more than ever right now, the threat of tariffs and higher prices. The trade war has weighed on shares, negative on the year, really lingering in the middle of the mag seven lately. This week, Amazon rolled out some incremental AI updates. One new model was meant to speed up delivery. Another is to upgrade its fleet of robots, which in turn helps automate warehouses and keep costs down.

So the key here for investors is margins. Right now, Amazon’s business has roughly 11% operating margins for e-commerce. It’s about half of that, but had gone negative, if you think back to COVID and those margins have since recovered. Gene Munster, for example, over deep water, thinks Amazon could get to 15% operating margins if all of these AI efforts end up paying off, especially in robotics. He can’t compare it really to Tesla’s strategy. Munster thinks a bulk of the value right now in AI for Amazon is in fulfillment center robots. I did speak to Amazon’s robotics chief technologist who described these AI updates as a way to improve the brains of these machines.

We call it physical AI because what we’re doing is we’re putting, we’re blending the mind with the body. We can create a more adaptive robot. We can take on the menial, the mundane, and the repetitive, eliminate that with our robotics. We can improve efficiencies for our customer to pass along a low cost as well. So all right, so let me break this down for y’all from a practical C students perspective so you can better understand what they’re trying to communicate to us. All right, so somebody in the chat, let me just highlight the super chat really quickly because it’s a bunch of different layers that we need to get on on top of this.

The first thing that I want to say is raise King Leo says going to help with layoffs. I disagree. If you studied Amazon and I study Amazon, I’m also an investor in Amazon. So let me preface this by saying that if you study Amazon, then you know that Amazon have a decent turnover rate. Why? Because people don’t want to work like that. Drivers don’t want to drive. Warehouse workers don’t want to warehouse work. A lot of people like to complain and say, oh man, the rates is too high. If you know what a rate is, if you’ve ever worked in a warehouse or a supplier or auto manufacturer, then the rate is what the expectation is as far as what you need to deliver every single hour or on average for a day.

How many packages you supposed to have processed, how many different pieces, how much you supposed to have manufactured, whatever. That’s what your rate is. So a lot of people are lazy or a lot of people say, oh man, I don’t like it. I can’t keep up. I don’t like physical work. And so they have a decent turnover rate, but Amazon is still growing. So they’re not divesting from warehouses. They’re investing in building a larger infrastructure so that what they can deliver faster, they can deliver more efficiently, but they can be the leader in e-commerce when it comes to people.

All right. So there’s not going to be layoffs. There’s going to be natural attrition. Natural attrition is much different than physical layoffs. Physical layoffs are here. Here’s your pink slip. I’m basically firing you and good luck finding another job, get your unemployment, whatever. Natural attrition is we’re just not going to continue to hire people because we’re going to replace them, not only just with robots, but what robots that can think physical AI. All right. Now the other side of it is margins. They say that right now they’re having a 11% margin. If you guys remember during certain parts during a pandemic, their current CEO did not get a bonus, did not get equity.

Why? Because the company underperformed based off of whatever it is that they were investing in and higher costs. So he took a hit one year because CEO pay is largely tied to the performance of the company, which then give you equity shares. That’s why Elon Musk. That’s why Tim Cook. That’s why Jeff Bezos is so rich. It’s not because they got paid a lot. It’s because the equity that they got paid in in the company then exploded or grew over time. And so CEO pay is largely tied to the performance of the company so that it incentivizes them to make the right decisions and not just make shortcuts or get a small pay right now because they’re going to long, longly have to pay for or benefit from whatever it is that the company does.

So they’re trying to increase their margin from 11% to 15%, which is huge for a company that does the type of volume that they make. Amazon largely makes the majority of their money off of Amazon, Amazon web services. All right. The e-commerce division, which they have to generate a ton of revenue in order to do a 10% margin, they want to increase that to 15% by increasing efficiency, which also reduces loss. You don’t have as many lost packages. You don’t have people calling off. You don’t have people having crashes. Ain’t nobody coming in there and tearing up nothing.

You increase efficiency, you reduce waste, and then you also increase margin as a result of it. You don’t have to deal with people. You got to deal with programmers. All right. So what this is basically saying is that Amazon is betting on not needing a whole lot of people in order to ensure that its operations remain efficient. AI is going to be there to assist people to be more efficient, not necessarily just to replace. You know how y’all was saying, oh man, we need all of these illegal migrants over here because ain’t nobody going to want to do the jobs that we don’t want to do.

Well, now you got a replacement. You can go home. Go home, Roger. Go home, Roger. Now you can go home. We ain’t got to worry about it. Listen, they got AI robots and tractors that oversee everything inside of the field, the farms, from farm to table, warehouses, all of this stuff. We don’t need the type of labor that y’all thought that we needed. That’s why they’re expediting the process of investment inside of the United States of America so that the jobs that we do have will be higher paying if you have the right skill set.

Let’s continue. This could go even further. There was a report from the information this week that Amazon is now testing humanoid robots for delivery. Right now, Amazon has almost a million of these machines out there and warehouses. I would say the vast majority though are not humanoid robots. They’re sort of these robotics arms you can see on the screen there, for example, or they sort of look like giant Roombas on these factory floors. If robots and AI and supply chain can meaningfully keep costs down, investors are going to be more willing to support about $100 billion in CapEx that Amazon has been shelling out right now, guys.

We’re just going to throw another number in, which was 1.56 million people. That’s how many Amazon employees globally. We’ve been talking about the job threat or job. You can start to see that reduce the more today invest in that unless they got to worry about workers compensation, layoffs, whether or not you’re going to go up today, all of that stuff. Autonomy is coming. It just is what it is. Listen, y’all can fight it. You can complain about it. You can sit here and whine and say you don’t like it.

It’s going to happen. It’s going to happen the same way that the internet came in and kicked ass the same way that they continue to update auto manufacturing the same way that we started to replace physical data centers with cloud, which is more physical data centers, but is managed by larger companies. Change is inevitable, and if you don’t adapt with it, then you’re going to get left behind and you’re going to be sitting here talking about, no, we used to make cards by hand. And it used to be in a shop every single day.

Job change, as Jim Breyer just said, to AI. When you’re talking about productivity and more robots, I assume you’re talking about cost savings on on jobs and potentially less. DZ says selling CAD is the new wave. Oh, they’re going to get replaced too. Oh, you don’t think that this AI robots that’s coming? I’ve already did whole reports on the fact that they got AI broke. Go to some of these shows, go to some of these technology shows, go to what’s the one in Vegas? It’s I forgot what it’s called.

It’s the one that’s coming. It’s one that going Vegas every single winner. It’s called I forgot what the name of the show is. I’m sure you all will tell me inside of the chat. Go to some of these shows, some of the booths that most of the people, they sit there and act like they curious. Hold on. I just want to know what’s going on. No, bro. I’m telling you that they have physical robots and these dudes is going to be like, listen, I don’t need no more modern women.

I ain’t even got to travel overseas. No more worry about no disease. I got me a physical AI girlfriend. That’s right, King TV. And they’re going to be asking for a full-throated apology. CES. Shout out to y’all. I appreciate y’all the consumer electronics show. CES. I’ll be there next year. Yep. CES. Real hard says the AI box to feel better than Cassie box. I heard Jesus. Lord have mercy. I should share that something we continuously ask them and the immediate answer is typically, oh, it’s actually in the near term.

Get a result in more jobs. I know Jim Breyer said, oh, different jobs. And that is sort of the sentiment here. But you have to, you know, if you’re connecting the dots here, if it’s more robots, especially humanoid robots, you would think the end result is fewer people. But with the job numbers out today, you know, there’s been arguments over not having enough people to work in some of these warehouses. But overall, you know, Amazon hasn’t said this. They’ve said, yeah, we’re going to keep jobs stable.

But, you know, that is one way that you could theoretically cut costs and keep costs down. Yeah. The other wrinkle is that some of the reporting about their, uh, their push on robotics this week suggests that they’re testing a lot of Chinese made robots, which adds a whole other level of complexity. Right. Unitary. So it’s sort of this smaller robot, but they have this partnership with agility, uh, the CEO of agility robotics, which is one of their partners was on stage yesterday at a tech conference saying, actually, no, we’re not, we’re not doing this delivery part.

They’re really focused on the fulfillment centers. But that would be, I would say the odd partnership, um, if you look at it on its face, but they’ve got, you know, as I said, almost a million of these robots out there, they’ve got a ton of different variations of it. Humanoids are, they’re kind of the exciting sci-fi version of these, but it’s such a small portion of what the actual robotics picture. So AI is going to come in multiple different forms. It’s not just going to come in the form that you think that it’s going to come in.

But, um, again, I am going to be having a Patreon live stream on how you can leverage it, the bit, uh, the business of it, different fields and industry that you can take advantage of as a result of it, all of that. We are going to have whole conversations. And I will post that inside of the Patreon about that next live stream. And then we got stock club coming right after that. [tr:trw].

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