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Amazon operates a global e-commerce platform with a large online marketplace that connects consumers to both direct sales and third-party sellers across many product categories. It earns money from product sales and marketplace fees, Amazon Prime subscriptions, and AWS cloud services, plus a large Amazon Associates affiliate network. The platform combines fast shipping, streaming, cloud computing, and digital services to reach customers across numerous countries. Its goal is to be the world’s most customer-centric company by offering convenient access to a wide range of products and services.
Company Size
10,001+
Company Stage
IPO
Headquarters
Seattle, Washington
Founded
1994
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Amazon's chief sustainability officer Kara Hurst admitted the company lacks a complete plan to achieve net zero carbon emissions by 2040. "I'm not going to sit here and say, 'We know all the ways that we're going to do this,'" she said at an Axios event. The admission raises questions about corporate climate leadership. Amazon, with $717 billion in revenue last year, is one of the world's largest clean energy purchasers with 42 gigawatts in its portfolio. However, the company recently announced plans to build a 7.65 gigawatt natural gas power plant for an AI data centre. The project could release up to 33 million tonnes of carbon dioxide annually, making it the largest single source of such pollution in the US. Hurst emphasised that tackling climate change requires both companies and governments working together.
Amazon is offering merchants on its platform 12 months of free access to Quick, an AWS AI workplace assistant. The company announced the initiative at Amazon Accelerate, its annual conference for sellers. Amazon is also allowing sellers to integrate Seller Assistant, another AI tool designed to help with their operations. The move aims to provide sellers with AI-powered tools to streamline their business processes on the platform. The announcement comes as Amazon continues to expand AI capabilities across its ecosystem, offering merchants enhanced support through automated assistance technology.
Amazon's custom chip business has reached an annual revenue run rate exceeding $25 billion, growing at triple-digit percentages year-over-year, management disclosed on its fiscal Q2 2026 call. The chips represent a significant slice of AWS, which generated $42.2 billion in quarterly revenue. Amazon designs several custom chips, including Graviton for general computing, used by 98% of its thousand largest EC2 customers, and AI chips with multi-year commitments from Anthropic and OpenAI. Management stated the chips' margins and returns match the core cloud business at comparable stages. The disclosure comes as Amazon plans to spend approximately $220 billion on capital projects in 2026, up from an earlier $200 billion target. The company's order backlog stands at $496 billion, growing triple digits annually, with demand exceeding 2026 capacity. For fiscal Q3 2026, Amazon guided operating income between $22.5 billion and $26.5 billion.
Amazon blocked Meta's Muse AI agent from completing purchases on its marketplace, citing violations of its conditions of use. Amazon shares gained approximately 0.8% following the move. Meta said Muse requires user approval before purchases, cannot access stored payment details, and uses one-time cards through Stripe's Link. The dispute highlights growing tension over AI agents that sit between shoppers and marketplaces, potentially disrupting customer relationships and transaction data flows. Amazon's North American business generated $116.2 billion in second-quarter sales and $9.1 billion in operating income. The shares currently trade at $255.83, approximately 2.74% above GuruFocus' estimated fair value of $249.00. The key question for investors is whether Amazon will eventually treat third-party shopping agents as distribution channels or maintain closed access to protect customer checkout control.
Shopify has made its entire store network accessible to Meta's Muse AI agent, whilst Amazon has blocked the technology entirely. On 21 September, Shopify chief executive Tobi Lütke announced Shop Pay integration for Muse across all Shopify-powered stores, following December's launch of Agentic Storefronts. The move makes Shopify stores discoverable in AI agent channels by default, requiring no merchant setup. In Q1 2026, AI-driven traffic to Shopify stores grew eightfold year-over-year, whilst orders from AI-powered searches increased approximately thirteenfold. Amazon blocked Muse the same day, citing unauthorised AI agent activity. Independent merchants using WooCommerce, BigCommerce, or custom platforms face a more fragmented landscape, with Stripe Link covering over one million businesses but lacking platform-native integration.