what we know about matt garman? ed: matt garvin is a long time or at aws. he started in 2005, full-time in 2006. he went from being a product guy in the early days of aws, particularly on the compute side. andy jaffe task tim moore with demand on the lead generation side, being vice president for sales and marketing around the world. selipsky stepping down as a bit of a surprise but he leaves aws and a pretty rude health. the annual revenue run rate is starting to show signs they are starting to make money, sales from generative ai. we are still trying to work out if this means a change at all in strategy. katie: that's the big question. garman is no stranger to amazon or aws. starting as an intern in 2005. here we are. now he is running it. ed: yes. look, andy jassy already put his stamp on aws. when jeff bezos stood down as ceo of amazon and andy jassy took the helm he had been at the head of aws. adam selipsky was at the head of tableau and andy jassy ask him to come back in the pandemic. i don't think there is any sense matt garman will discontinue aws'

shares are off of session lows, -- down and asking if this is bad for the cash cow and who is matt garman? let's start with the news at hand. why is adam zielinski stepping down as ceo and should we be worried about the health of aws? >> after listening to andy jaffe say it, adam solicits -- adamson lipsky -- adam selipsky said they would talk later about getting it in shape. now he's considering other challenges. nobody detailed that there males . we just know that he is out as of last month -- next month. well -- caroline: well-earned rest before he moves on to his next challenge. who is matt harmon? mba intern turning key executive? matt: that's right, he joined as an intern in 2005. health to set pricing for the first names of the products on the market. since then he spent most of his time as an engineering leader. back in 2020 he found himself running sales and marketing and like he was getting set up to -- succeed andy jassy. turned out he brought back so lipsky, but this was not a surprise to anyone who followed that trajectory. ed: the market was a bit worried, if you call a perc

that worked with matt garman, a wartime ceo and technical leader, tasked with getting ahead in the competitive ai landscape. one area that amazon is now looking to beef up the ai offering is with alexa they will give the voice assistant a major ai overhaul, adding a monthly subscription to offset the costs it could have more g gen ai-powered chat bots the price has not been decided yet. >> you bring us up to date on the developments from the meeting. jason snipe, talk about amazon it's up 21% year to date. >> what i like about amazon and what has played out this year is operating income has grown substantially. i mean, up 40% year over year. aws has reaccelerated, up 17% in the last quarter so a real great job with the retail business as well. i think going forward, and then when i think about the grocery business and the other business they're involved in, you know, i think about them taking the lead in that space as well. so i just, i really like this name i continue to like it. and i think out of the mega cap spectrum, it's my favorite play. >> you're new to the name, initiated a few months

yeah, so, a source close to amazon telling me the new aws ceo announced today matt garman is what theya war-time leader and a leadership change was needed as amazon is perceived as lagging right now in a.i. t they described the ceo as more high level and a different leader whoelead leader who is more aggressive. according to this source, amazon is, quote, the most vulnerable big tech name right now in a.i. i'm told this is a key focus for amazon founder and former ceo jeff bezos. for example, not pleased with a.i. startups using other cloud providers. this person telling me bezos is still very involved in the company's a.i. efforts. he is known to send emails to other executives about it, and he is not making any sort of operational decisions, but is -- what i'm told, is hyper aware of the competitive landscape right now. we should say that amazon did decline to comment on this. >> sort of surprising, the google problem, in that, you know, amazon has been in a.i. for so long, when you think of alexa and the ability of saying, "alexa, i need paper towels," and then alexa buys them and s