AWS Partners with Cerebras on AI Chips; Alphabet to Replace Verizon in Dow
AMZN•Cerebras Systems announced a multiyear AI hardware partnership with Amazon Web Services, forecasting Q2 gross margins of 36–38%, down from 47% in Q1. Alphabet will join the Dow Jones Industrial Average on June 29, replacing Verizon and keeping Amazon among five mega-cap tech members with Google, Microsoft, Apple and Nvidia.
1. AWS-Cerebras Partnership
Amazon Web Services entered a multiyear agreement with Cerebras Systems to deploy high-performance AI inference hardware. Cerebras projects fiscal Q2 gross margins of 36–38%, down from 47% in Q1, and anticipates $194 million in revenue, reflecting an 88% year-over-year increase.
2. Dow Jones Reshuffle Reinforces Tech Dominance
On June 29, Alphabet will replace Verizon in the Dow Jones Industrial Average, joining Apple, Amazon, Microsoft and Nvidia as one of five mega-cap technology firms in the 30-stock index. This change underscores Amazon’s continued presence among the leading US tech giants and may influence index fund allocations.
