Tech

Venture capitalist Chamath Palihapitiya says Amazon is close to a 'natural monopoly'

Amazon could be $3T company in 10 years: Social Capital founder
VIDEO3:2603:26
Amazon could be $3T company in 10 years: Social Capital founder

Amazon could be close to a "natural monopoly" in two important markets, venture capitalist Chamath Palihapitiya told CNBC on Thursday.

The Social Capital founder and CEO, who has said he sees Amazon worth $3 trillion in 10 years, said the first market the company has "cemented" is retail.

"There's not a thing that probably the three of us aren't buying from Amazon," Chamath said on "Squawk Box."

Amazon's domination in online retail has come as traditional retail stores face growing pressure from lackluster economic growth and concerns about President Donald Trump's planned border tax.

"And then Amazon's AWS business just keeps getting better," he said.

Amazon Web Services, the company's fast-growing and lucrative cloud business, has pushed to serverless computing, he said.

"Essentially what they do is they'll abstract away a lot of the complexity of having you deal with servers," he said.