Jeff Bezos has taken the fight to artificial intelligence skeptics, arguing in a rare CNBC appearance that the technology will unleash a wave of productivity rather than destroy jobs — even as a new regulatory push in Canada threatens to squeeze margins in Amazon’s streaming business. The Amazon founder and executive chairman dismissed two of the most prominent risk narratives surrounding AI, comparing the current boom to the biotech bubble of the 1990s and insisting that “the good ideas will pay for all the losers.”
Speaking from Blue Origin’s launch site in Florida, Bezos painted a picture of technology cycles that ultimately drive progress — and he was unequivocal about the job-loss debate. “Completely wrong,” he said when asked about mass unemployment from AI. His metaphor: a worker digging a basement with a shovel who suddenly gets offered an excavator should be thrilled. AI, he argued, will boost productivity and trigger deflation across goods and services, provided regulators do not stifle the technology prematurely.
That optimism stands in sharp contrast to public sentiment. A recent Pew survey found that half of US adults are more worried than excited about AI.
Satellites in the Sky, Cloud on the Rise
While Bezos was making the rounds, Evercore ISI analyst Mark Mahaney lifted his price target on Amazon and reaffirmed a buy rating. His conviction rests partly on the company’s satellite network, LEO, which he sees as a growing platform for consumers, businesses, and government clients. Mahaney highlighted Amazon’s spectrum position as a competitive edge for future direct-to-device satellite connections, though he noted near-term risks around launch frequency and regulatory approvals.
LEO is gaining commercial traction. Delta Air Lines plans to introduce the service on 500 aircraft starting in 2028, offering free Wi‑Fi to all SkyMiles members with download speeds of up to 1 Gbps. In May, FCC filings revealed a compact LEO router measuring roughly 15 by 15 centimeters — significantly smaller than Starlink’s standard equipment.
The financial backdrop reinforces the bullish narrative. In the first quarter of 2026, Amazon posted revenue of $181.5 billion, up 17% year on year. AWS alone contributed $37.6 billion, marking its strongest growth in 15 quarters. Operating profit hit a record $23.9 billion, while net income came in at $30.3 billion.
Should investors sell immediately? Or is it worth buying Amazon?
Canada’s Content Levy Adds a Layer of Cost
Even as Amazon’s core businesses fire on all cylinders, a regulatory development in Canada threatens to increase costs in its streaming division. The Canadian Radio-television and Telecommunications Commission (CRTC) has proposed raising the mandatory contribution from foreign online streamers to 15% of Canadian revenue — a tripling from the current 5% rate. The additional money would be directed toward domestic programming, supporting local producers and creators.
For Amazon Prime Video, the impact depends on its revenue in Canada. Higher streaming sales there would mean larger required spending on Canadian content, compressing margins in a business already squeezed by expensive originals, sports rights, and pricing pressure. The CRTC’s move fits a broader pattern: regulators worldwide are demanding that global platforms contribute more — for culture, infrastructure, data protection, and local investment.
Amazon faces other regulatory and compliance headwinds. In Germany, the company announced water projects that will restore nearly 370 million liters annually to local communities. A separate report noted that Amazon received $17.5 billion in US federal tax subsidies in 2025, equivalent to roughly 10% of all such breaks awarded to publicly traded companies.
Shares Near a High Despite Headwinds
The market has so far shrugged off the Canadian fee proposal. Amazon shares closed Thursday at €231.00, less than 1% below their 52‑week high. The stock has gained 19.49% since the start of the year and 28.29% over the past twelve months.
The Canadian levy is unlikely to be a dominant near-term profit driver, but the signal matters: national markets are increasingly determined to make global platforms pay for local costs. If the CRTC’s proposal is adopted, Amazon’s regulatory complexity will rise — and other countries may follow suit.
Bezos’s confidence in AI, meanwhile, comes with a price tag of its own. Amazon plans to spend $200 billion this year on AI infrastructure alone. Combined with Microsoft and Google, the three major cloud providers are on track to invest more than $700 billion — a figure that inevitably raises questions about sustainability. Bezos has already given his answer.
Ad
Amazon Stock: Buy or Sell?! New Amazon Analysis from May 22 delivers the answer:
The latest Amazon figures speak for themselves: Urgent action needed for Amazon investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from May 22.
Amazon: Buy or sell? Read more here...
