Amazon, Inc. AMZN isn’t flustered by its lagging position in the artificial intelligence race and is pushing ahead with a well-thought-out strategy.
What Happened: Amazon Web Services, or AWS, announced this week that it is getting started on a small scale with a $100 million investment that will be used to build a center that will specialize in helping businesses use generative AI.
“The AWS Generative AI Innovation Center team of strategists, data scientists, engineers, and solutions architects will work step-by-step with customers to build bespoke solutions that harness the power of generative AI,” the company said.
The modest start comes despite Amazon being in a strong financial position to plow much more into this hot-and-happening technology, Fortune reported. AWS generated revenue of $62.20 billion and $18.53 billion of operating income in 2022.
Amazon’s seemingly laidback approach contrasts with that of other big techs. After Microsoft Corp. MSFT came out guns blazing with its $10 billion investment in OpenAI, other tech giants have plunged headfirst into the arena, not wanting to be left behind. These companies have committed billions of dollars.
The Fortune report said Alphabet, Inc.’s GOOGL GOOG CEO Sundar Pichai reportedly issued a “Code Red” call to bring its AI services, including the chatbot Bard, to the market.
Meta Platforms, Inc.’s META Mark Zuckerberg is completely tuned into the social media giant’s AI initiatives, reports said.
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Amazon Only Three Steps Into AI Race: AWS CEO Adam Selipsky said in an interview with CNBC this week that Amazon is only three steps in in a 10-kilometer race.
“You ask yourself the question — where are the different runners three steps into a 10K race?” Selipsky asked. “Does it really matter? The point is, you’re three steps in, and it’s a 10K race.”
The AWS CEO noted that Amazon’s center is a program as opposed to a physical location. The e-commerce giant was reportedly already working with companies such as Ryanair and Lonely Planet.
Selipsky said Amazon will proceed with its tried-and-tested strategy of focusing on customers in its AI pursuit.
“And if people want to perceive us in a certain way, we’re misunderstood, that’s okay, as long as customers understand where we’re going,” he told CNBC.
The executive reportedly said he wasn’t concerned about Amazon not owning the first popular large-language model or even having a share in it with the likes of OpenAI.
Amazon closed Friday’s session down 0.63% at $129.33, according to Benzinga Pro data.
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