Amazon invests $100M in AI to compete with Google and Microsoft

Amazon AI


IMPORTANT POINTS:

  • AWS invests $100 million in a generative AI center to compete with rivals like Microsoft and Google.
  • The company will hire more data scientists, engineers, and solution architects, and is already working with companies like Highspot, Twilio, RyanAir, and Lonely Planet.
  • AWS CEO Adam Selipsky stresses the relevance of AI in the cloud and the security that AWS offers compared to others in the industry.

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Amazon Web Services (AWS) announced Thursday that it is earmarking $100 million for a center that will help businesses use generative artificial intelligence, a technology that has taken off since OpenAI introduced its ChatGPT chatbot to the public.

While it seems like a small investment for a company that handles $64 billion in cash and half a trillion dollars a year in operating expenses, this announcement demonstrates that AWS recognizes the importance of the current moment in generative AI and the relevance of staying on top of the game. conversation, along with its rivals, Microsoft and Google.

AWS CEO Adam Selipsky shared his insight in a recent interview with CNBC, “You ask yourself — where are the different runners within a 10K race? Really matters? The point is, you’re in, and it’s a 10K race.”

As part of the latest announcement, Amazon said it will hire more data scientists, engineers, and solution architects. AWS is already working with Highspot, Twilio, RyanAir, and Lonely Planet on this “program,” which the company says is not a physical hub.

Amazon versus Microsoft and Google

Although Amazon leads the cloud infrastructure market, Microsoft and Google have had more prominent showings in generative AI. While Amazon has extensively leveraged AI for years to provide shopping recommendations and operate its Alexa voice assistant, it doesn’t have the first popular big language model that can enable a chatbot or document summary tool. Selipsky assures that he is not worried about it.

“Amazon has had many examples in its history where it has said: we are going to focus on the customers and we strongly believe that we are going to work with them, we are going to build what they want. And if people want to perceive us in a certain way, they misunderstand us, that’s fine, as long as customers understand where we’re going.”

Amazon is currently facing the challenge of meeting the demand for AI chips. It decided to start manufacturing chips to complement the graphics processing units of Nvidia, a leader in the space. Both companies compete to increase their offer in the market.

Selipsky insists that the AI ​​trend is real, and applies as much to its Bedrock generative AI service and Titan models as it does to the new innovation center. “AI is going to be this next wave of cloud innovation,” He said. “You really need the cloud for generative AI.”

Selipsky argues that AWS offers a measure of credibility in the generative AI offering that others in the space do not.

“I can’t tell you how many Fortune 500 companies I’ve talked to that have banned ChatGPT in the enterprise. Because at least the initial releases just didn’t have that concept of enterprise security.”