Amazon and Apple are two of the most powerful companies in the world. And both are on the lookout for additional office space.
Both Apple and Amazon have been searching for the perfect place to open a new campus — but their quests have …
In 2017, Amazon announced that it was was searching for a second headquarters in North America, known as HQ2, and began accepting proposals from cities and regions across the continent.
Then, in 2018, Apple announced that it planned to build a fourth US campus, though there would be no bidding war.
On the surface, the searches seem similar: two tech giants scouring the US for the next best place, whose expansions will almost certainly create waves along with jobs wherever they end up.
But it turns out Amazon and Apple are looking for different things, in different places. Below, weve compared the two companies search processes to see how theyre similar — and where they diverge.
The Impact of Amazons HQ2
Atlanta, Georgia, is a finalist for Amazon HQ2. ESB Professional/Shutterstock Amazon said it received 238 proposals from cities and regions to host its second headquarters. In January 2018, it narrowed those options down to just 20 cities, including Atlanta, Austin, Boston, Chicago, Dallas, Denver, and Columbus, Ohio.
On its website, Amazon says its choosing the city for its second headquarters through a public process because “we want to find a city that is excited to work with us and where our customers, employees, and the community can all benefit.”
Meanwhile, Bloomberg reported that Apple doesnt have plans to host the same kind of bidding war — though several cities have already showed interest.
New York may be a strong contender for the home of Apples fourth US campus. pisaphotography/Shutterstock In a YouTube video, Scott Galloway, a marketing professor at New York Universitys business school who predicted that Amazon would buy Whole Foods, said Amazon will choose either the NYC metro area or the DC metro area for HQ2.
Thats partly because those cities are where they can attract the best talent and partly because Amazon CEO Jeff Bezos will want to spend time there, Galloway said.
Meanwhile, Bloomberg looked at Moodys Analytics, which considered factors such as tax incentives and local business environment, human capital, and transportation, and determined that Apple would likely build its fourth campus in the northeast, southeast, or midwest.
Bloomberg also reported that the East Coast has an advantage in that it can provide customer support before call centers in Texas and California open for the day. Plus its close to suppliers.
Steve Jobs Theater at the Apple Park campus in Cupertino, California. Justin Sullivan/Getty Amazon HQ2 may wind up in Los Angeles, California; Austin, Texas; or Dallas, Texas, according to the company.
Apple, however, is steering clear of California, the home of its $5 billion “spaceship” campus, and Texas, where it already has a large presence.
A worker inside an Amazon warehouse. Getty Images Amazon said it will create up to 50,000 new jobs at the site of HQ2, Business Insiders Dennis Green reported. According to Amazons website, it employs more than 90,000 people in the US full-time.
Apple has said it plans to hire 20,000 new workers over the next five years, both at current campuses and at the new one. As Business Insiders Kif Leswing reported, Apple already employs 84,000 people in all 50 US states.
Inside the Amazon Spheres at Amazons Seattle headquarters. Lindsey Wasson/Reuters Amazon has said it will invest $5 billion on building its HQ2.
In a January 2018 statement, Apple said it expects to invest “over $30 billion in capital expenditures in the US over the next five years.”
Apple employees in London. Jack Taylor/Getty Amazon hasnt specified the types of employees that will work at HQ2. On its website, it says HQ2 “will be a full equal to our current campus in Seattle.” Whats more, HQ2 “is expected to create tens of thousands of additional jobs” in the surrounding community.
In the January statement, Apple said the new campus would initially be designated for technical support for customers.
Cupcakes topped with the Amazon logo. Rachel Murray/Getty The suspense may seem unbearable, but it will likely last a while longer.
Amazon is expected to make a decision as to the site of HQ2 in 2018, according to its website.
In the January statement, Apple said it will announce the location of its fourth campus later this year.
Boston, with Chicago a close second, according to Wells Fargo Securities A.I. system, Aiera.
The prediction was based on publicly discussed factors such as company name (AMZN), dates (September 2017 to March 2018), keywords (HQ2, HQ, Headquarters) and outputs (location), and their impact on stock performance and frequency of discussion, the Wells Fargo (WFC) unit explained.
Based on those criteria, the clustering model processes the entire graph of processed data between the two aforementioned dates — in this case, about 900,000 objects — and uses the keywords and output requested as pivot points to generate all detectable clusters.
Those clusters, in turn, are organized by velocity and trend, sentiment, topic and narrative pattern, and scored against other performance factors (macro analysis, stock price, etc.). Once scored, all possible outputs are sort-ordered and the top selections are sent to the summarizer (which allows Aiera to explain its selection).
When all was said and done, the top-predicted finishers among the 20 finalists for Amazons $5 billion project were Boston, Chicago, Atlanta, New York, Toronto, Austin and Washington, D.C., Aiera calculated. (An unscientific study of coverage indicates that D.C., home of Amazon Chief Executive Jeff Bezos Washington Post, is the slight favorite to win the HQ2 sweepstakes, and its promise of up to 50,000 jobs.)
Though hardly a make-or-break prediction, Aieras prognostication is another early test of the accuracy of artificial intelligence as it increasingly becomes a resource to parse through data and algorithms on business patterns and decisions.
Then again, who can argue with Aiera? Since it was introduced in September, its issued buy and sell calls on nearly 550 stocks including bullish predictions on Amazon and Alphabet (GOOGL).