Musk floats Amazon rival as AI shopping battle comes into focus

Investing.com -- Elon Musk has floated the idea of launching a competitor to Amazon.com, adding a new twist to the debate over how artificial intelligence could reshape online shopping.

“Maybe we should start a competitor to Amazon 🤔,” Musk wrote on X on Thursday, responding to a post claiming Amazon was blocking Grok bots from placing orders on its platform. The comment raises the possibility of a new competitive front for the e-commerce giant, although Musk did not provide details or announce any concrete plans.

The remarks come as AI companies explore ways to let digital agents handle purchases on behalf of users, potentially changing how consumers discover products, compare prices and complete transactions. Grok Bot is designed to search for deals and make purchases for users, potentially reducing the need for shoppers to visit retailers’ websites directly.

Amazon has also blocked Meta’s Muse AI shopping agent from its platform, highlighting a broader conflict between retailers seeking to control access to their marketplaces and AI companies looking to automate online purchases. Amazon has been developing its own AI-powered shopping tools.

Amazon shares were down 1.7% amid broader weakness in technology stocks. The decline was part of the wider market selloff rather than an apparent reaction to Musk’s comments, but investors will be watching whether his suggestion develops into a more concrete competitive threat.

A competing shopping platform backed by Musk’s companies could introduce a new rival for Amazon, but building a viable alternative would require more than an AI interface. It would also need to attract merchants, establish reliable fulfillment and delivery, and persuade consumers to change their shopping habits.

Original Article

You May Also Be Interested In

• Evercore comments on Amazon Day takeaways
• AWS launches Torchneuron for trainium AI chips
• Roivant Sciences stock surges on positive uveitis trial data