What is your claim to fame . Im the founder of amazon. Com. What began as an online bookstore a millennia from now, people are going to look back and say wow. Has become a virtual empire. Amazon really is arguably the most Successful Company in the history of business. Wow, thats saying a lot. This is the beginning of ecommerce. You guys didnt even know if this thing was going to work. We had a pretty good instinct. If you make the best Service Online, people will come. This is a company that wants to control the infrastructure. As computers continue to get cheaper, we will layer innovation on top of that. Its plausible that amazon will know you better than you know yourself. Alexa. Its in our homes. Should people trust that it wont be used against them in some way that they dont authorize . Absolutely. At our fingertips . Amazon web services took over the web basically in a decade. Does having that much power give you pause . Thats a significant responsibility. Were aware of that. And now it fuels our economy. Amazon is americas second trillion Dollar Company now. The company is now worth almost as much as the entire economy of australia. Is amazon too big . I dont think amazon is too big. I think they have monopoly power. Amazon has become an invasive species. So you think amazon should be broken up. Oh, 100 . A journey. Its a business miracle. And a leader unlike any other. This is blue moon. I asked people at amazon to wake up every morning afraid, wake up terrified, be afraid of our customers. Those are the people we have to Pay Attention to. A cnn special report. I can guarantee you one thing, it will be fun. The age of amazon. How has the Retail Industry changed during this rise of amazon . Well, you have this great white shark thats kind of looming offshore. Great white shark . This thing does and can eat everything. Despite holding only a small fraction of Global Retail sales, today amazon takes claim for nearly 50 cents of every dollar spent in Online Ecommerce in the United States, an astounding market dominance. Youve called what jeff bezos has built a miracle. Miracle. Its one of the maybe the greatest before it gets all through. Legendary investor Warren Buffett called himself an it yac idiot for not investing in amazon earlier. Warren buffett told me just a few weeks ago, the rise of amazon in his view is a miracle. Is it a miracle . Its a business miracle. You wouldnt thought that almost a trillion Dollar Company would be formed in 25 years, that it would disrupt so many Different Things and create so many Different Things and its still a growing machine. So, yeah, its a business miracle. Miracle seems like its an act of god and amazon has been anything but. I think its the application of business wisdom over a long period of time. Brad stone has been studying amazon and writing about its growth since the late 90s. Youre writing another book about amazon. Where does that bik up . The Everything Store and in about 2011, and there was so much story left to tell. The company is about four times larger than it was then and so much has happened. In addition to selling millions of products, amazon also manufacturers thousands of its own products for the Amazon Marketplace. Everything from batteries to luggage to motor oil. More than half of what sold on amazon comes from a contribution of mom and pop sellers to bigger operation that is are selling directly to amazon customers on their own and amazon is just taking a cut. A seller, a manufacturer, a marketplace and just the beginning of amazons reach. Theyre making investments in health care. Youre trying to fix that, make it better with jamie diamond and jeff bezos. What should america expect the three of you can do on health care . Well do our best. Its a 3. 4 trillion industry. In finance. What would your over under be on amazon becoming a bank one day . I think its i really dont know. Even a category like online advertising, theyre the third biggest platform for ads in the u. S. Only after google and facebook. Television, whos the second largest spender on television in the world right now, amazon. How big do you guys want to be . It has been reported that amazon spends 5 billion a year on original and licensed content. Am i in the ballpark. I cant confirm nor deny that. Okay. The most innovative product is amazons alexa device. Alexa, turn on the shower. Whether theyre bumping up against, anywhere theyre bumping up against other big players, theyre winning. Theyre also shipping. Amazon has amassed its own logistics empire with an expanding fleet of trucks, planes, drones, robots and of course warehouses, hundreds of warehouses. It makes sameday possible and makes nextday delivery possible. There are some who say that amazon killed traditional retail. How do you see it . Were trying to do is invent for customers. We look at things that we can make better by innovation. I would describe amazon in medical terms, an opportunist infection. Were some of these Companies Going out of business anyways, yeah, but amazon made the decline much faster. In part, by reimagining the physical store experience with their own amazonbranded retail stores. Amazon is now the only firm in the world that can really perform consistently what i refer to is jedi mind tricks. When they announced the acquisition of whole foods, kroger declined a third. Stacey mitchell is codirector of the institute for local selfreliance, a nonprofit that studies economic concentration. A handful of Big Companies have taken over large swaths of our economy. We try to understand amazon by talking about all of the different businesses its in. This is a company that wants to control the infrastructure, the rails that other Companies Need to use in order to get to market. The Infrastructure Infrastructure lets entrepreneurs do Amazing Things. In addition to the retail platform, the cloud is another area thats infrastructure. Speed is really important part of the culture at amazon. Were trying to enable really any company or any government to run their Technology Infrastructure on top of our Technology Infrastructure platform. The lesser known part of amazon, amazons Cloud Business has been instrumental to the companys bottom line. Amazon web services took over the web basically in a decade. When Technology Journalist started noticing the growing footprint of amazon in her familys life, she decided to try an experiment, to live without amazon. I worked with this technologist who built a tool for me that just prevented any of my dwevices from talking to amazon servers. That prevented me from using amazon web services. Not surprising given that aws powers onethird of the worlds cloud. Netflix, the cia all rely on amazon web services. Its impossible to avoid. Amazon has become an invasive species, 100 . Next, how bezos did it. Hong kong, japan, australia. This is day one. This is the very beginning. Applebees handcrafted burgers now with endless fries starting at 7. 99. And get more bites for your buck with late night halfpriced apps. Now thats eatin good in the neighborhood. Managingaudreys on it. S . Eating right and staying active . On it audrey thinks shes doing all she can to manage her type 2 diabetes and heart disease, but is her treatment doing enough to lower her heart risk . Maybe not. Jardiance can reduce the risk of cardiovascular death for adults who also have known heart disease. So it could help save your life from a heart attack or stroke. And it lowers a1c. Jardiance can cause serious side effects including dehydration, genital yeast or urinary tract infections, and sudden kidney problems. Ketoacidosis is a serious side effect that may be fatal. A rare, but lifethreatening bacterial infection. In the skin of the perineum could occur. Stop taking jardiance and call your doctor right away if you have symptoms of this bacterial infection,. Ketoacidosis, or an allergic reaction. Do not take jardiance if you are on dialysis or have severe kidney problems. Taking jardiance with a sulfonylurea or insulin may cause low blood sugar. Lower a1c and lower risk of a fatal heart attack . On it with jardiance. Ask your doctor about jardiance. Tell him were flexible. Dont worry. My dutch is ok. Just ok . in dutch tell him we need this merger. in dutch its happening. just ok is not ok. Especially when it comes to your network. At t is americas best Wireless Network and now, get the option of spotify premium on us, with your unlimited plan. More for your thing. Thats our thing. Did you know that every single flush [toilet flush] flings odors onto your soft surfaces . Then they get released back into the air so you smell them later. Ew. Right . Thats why febreze created new small spaces. [clicking sound] press firmly and watch it get to work. [popping sounds] unlike the leading cone, small spaces continuously eliminates odors in the air and on surfaces [popping sounds] so they dont come back for 45 days. Now thats one flushin fresh bathroom. Breathe happy febreze. La la la la la. By 2012 you would be hard pressed to find someone who hadnt heard of jeff bezos. The godfather of the virtual bookstore. The Everything Store while researching his book, this journalist found that person. I said, im writing a book about amazon and about this guy named jeff bezos and i would like to talk to you for it. And he had no idea what i was talking about. That person was jeff bezoss biological father. I was like, well, hes your son. And he was perplexed. And i said when you were in high school, you know, you had a son named jeff. And he said, is he still alive . And i was like, yeah, hes one of the wealthiest guys in the world. Jeff bezos was born in new mexico in 1964. His mother was a junior in high school when she and her boyfriend became parents. She doesnt talk about it that much, my mom had me when she was 17 years old. Im pretty sure that wasnt cool in 1964 to be a pregnant mom in high school. But by the time jeff turned two, his mother and boyfriend had split up. And jackie was left to raise her son on her own. Look at jeff. Look at that hair and the glasses. One of bezoss closest friends from high school remembers jackie as a loving and determined mother. Jackie is the toughest, hardest working person ive ever met and the most loyal, and jeff gets that from jackie. Jackie bezos was clearly the force in jeffs life. A fiercely protective mother who got jeff into the best schools and got him the best opportunities and she also recognized i think jeffs abilities early on. Jackie and jeff wouldnt be a family of two for long. Soon, jackie would fall in love with a cuban immigrant. They married when jeff was 4. My father adopted me when i was about 4 years old. I have the worlds best dad. Jeff bezos is an outstanding student. Bezoss academic ambitions would lead him to the top of his High School Class and then to princeton university. I went to princeton specifically to study physics, but a couple of years into it, i realized that i wasnt smart enough to be a physicist. And then i transferred to Computer Science which i loved and never looked back. After college, bezos landed on wall street, at the hedge fund de shaw where he would mean his soon to be wife, mackenzie. He called me up one day and said im getting married. And i said to who . Just six months after they began dating, bezos and mackenzie were married and bezos continued to rise through the ranks where he began to explore a new medium, the internet. It spans the globe like a superhighway. Its called internet. I started looking at the internet and i found this incredible fact. Jeff bezos saw that web activity has jumped 230,000 in a short period of time. That was the ding, ding, ding in his head. I think he was able to see that the web was growing and it would create a new set of business opportunities. Jeff called me and he said, mackenzie and i are quitting our jobs and were moving to seattle and were starting a company. And i said, great, what are you going to do . He said were going to sell books. I said nice. He said on the internet. I said cool. Whats the internet . In 1994, then 30yearold jeff bezos ditched his wall street job, borrowed his fathers car and drove with his wife mackenzie to bellevue, washington, just outside seattle. And inside that garage, jeff bezos started his own company, an online bookstore. By the end of the year, that company had a name, amazon. I went to www. Amazon. Com and started searching for books and was immediately hooked. Thank you for calling amazon. Com. By the time she was hired in 1996 to run marketing, Amazon Headquarters had moved from the bezos garage to actual offices in downtown seattle. It was a startup feel. The first building, it was a dump. Jeff thought it was too fancy for us. There was no airconditioning. Stained carpets, but we loved it. The first thing that you did when you started at amazon is you built your own desk. Greg joined amazon in 1997, working in Product Management and marketing for books. Today he runs amazon into hollywood, prime video. Tell people what door desks are. It was frugal. Its a good symbol of the mind set that jeff wanted to create. We had to be resourceful and creative. But in order to expand beyond books, way beyond books, bezos needed capital and a lot of it. Amazon. Com jumped 5 on its first day of trading. In the middle of the dot com frenzy, amazon went public. This is day one. This is the very beginning. Day one. Its always day one became the bosem bezos mantra. I like babe ruth calling his home run shot. Bezos would stick to that longterm thinking, even during amazons toughest times. Amazons stock has lost much of its luster. Amazon price stock price tumbled losing more than 90 of its value in the next two years. There were famous analysts who said amazon would run out of money. But it was a hard time, they were losing a lot of executives. Our first announcement is a complete video game store. Facing intense pressure, bezos pushed ahead right into new markets. Tomorrow, we launched these four new stores. People were amazingly customer focused. They felt like they were inventing and breaking new ground. But with new inventory came new problems. How to store and ship all of it. So youre referred to as the other jeff. Thats my name. I think its great. I grew up as a programmer, thats me. Jeff has been with amazon for 20 years and rarely gives television interviews. Hes one of bezos top executives. But back in 1999 when he first joined amazon, he used his background in manufacturing to transform amazon delivery into what would become amazon prime. You guys didnt even know if this thing was going to work, true . We didnt know for sure that customers would love it, but we had a pretty good instinct. Both of you, both jeffs are big risktakers. Is that right . I think. I think prime, at the time, was a big risk. Today its estimated that more than half of u. S. Households are prime members. What should that tell us about how important prime is to amazons success . I think its very important. But its not the only thing thats important for its success. They say about you that youre the most powerful man in the cloud. Do you like that description . The man behind amazons cloud next. Family, starting with unlimited data. Use as much as you want, when you want. And if you like netflix, its included on us. Plus no surprises on your bill. Taxes and fees are included. And now for a limited time, with each new line, get one of our latest smartphones included. Thats right, only 40 line for four lines and smartphones are included for the whole family. [ text notification now that you have] new dr. Scholls massaging gel advanced insoles with softer, bouncier gel waves, youll move over 10 more than before. Dr. Scholls. Born to move. My Car Insurance to geico. This is how it made me feel. It was like that feeling when you pull your green sock out of the dryer and then the very next sock is the other green one. And then you pull out two blue ones. And you keep going till youve matched every single sock in perfect order. And the owner of the laundromat is so impressed, he hangs a picture of you next to the dryer. Geico. Fifteen minutes could save you fifteen percent or more on Car Insurance. Jeff bezos, the richest man in the world, but they say about you that youre the most powerful man in the cloud. Do you like that description . I dont think of it that way. In the heart of amazons Seattle Campus i met with andy jassy, one of jeff bezoss top leaders, the ceo of aws, the man who built amazons cloud. Were in the spheres which is kind of an amazing place when you look around. Its a place that amazonens can come and do work. Its really nice to be able to get away from what youre doing every day and be inspired by whats around you. Whose idea was this . I think it was jeffs idea. But amazon web services, that was jassys idea. An idea so powerful, its now perhaps amazons most valuable business. It generates an unusual amount of margin for amazon. The best margins for amazon, period. And its changed enterprise computing. I think it is fair to say many people watching this have no idea what aws is. Where did it come from . There were a few things going on that made us think that this was an interesting idea. Most notably, jassy realized that in order to continue experimenting and expanding, amazons Computing Technology would have to move a lot faster. If you need a server to try and experiment, typically it takes you 10 to 18 weeks to get that server. With the cloud, you can spin off thousands of servers in minutes. We figured if we needed it, other Companies Needed it as well. In the same way that amazon transformed the speed of shipping physical products, aws has done the same for data. The cloud is not up there, its in machines sitting on the ground all around the world and theyre storing all of this content and shipping it out to web users. What strikes m