Lana

Problem is, the firm's spending plans also came in above expectations.

Amazon's earmarked $200 billion to splash this year, roughly $50 billion more than analysts were predicting.

No prizes for guessing where it's headed — AI infrastructure, chips, and robotics.

That'll tamp down profit, which Amazon thinks could land as low as $16 billion this quarter — $6 billion shy of analysts' forecasts.

And that helps explain why investors initially sent the stock down about 10 percent after the results.

Amazon is reportedly in advanced talks to pump up to $50 billion into OpenAI — one way to admit that Alexa needs a brain transplant.

See, the voice assistant has fallen behind smooth-talking rivals like OpenAI's ChatGPT and Google's Gemini.

So, by tapping into OpenAI's know-how, Amazon could close that performance gap and, more broadly, make AI feel less like a party trick and more like actual infrastructure across its whole ecosystem.

Besides providing tech support, OpenAI will say thanks for the cash by going to Amazon Web Services for more computing muscle and custom chips.

That would bolster Amazon's most profitable segment, at a time when its AI tab is only growing.

Before we dive into the next story, it's time for our daily check-in with Carl.

You've got questions, he's got answers.

Carl, what have you got for us?

Thanks, Carl.

Next up, Elon Musk is lining up the newly merged SpaceX XAI entity for a stock market debut later this year, targeting a valuation as high as $1.5 trillion, no less.

That would instantly rank the firm among the biggest publicly traded companies in the US,

But Musk, of course, is shooting for the stars.

Not satisfied, he's already sounding out index providers about getting SpaceX added to major benchmarks much earlier than is normally allowed.

See, once a company's shares have been added to an index, all the funds tracking it, and there are a lot, have no choice but to buy in.

That creates a steady source of demand for the stock.