A recent announcement conveyed by the largest eCommerce platform Amazon revealed plans to invest around $100 million in establishing an artificial intelligence center. The Amazon cloud unit, also known as AWS, will create the proposed AI center.

The AWS team is optimistic that the AI center will enable Amazon to remain ahead of the curve and outshine its closest competitors, such as Microsoft and Google. 

Amazon Investing in AI

In an exclusive interview with the Bloomberg news site, the AWS team mentioned that the Generative AI Innovation Center would provide the Amazon technical team a platform to connect with the client and other developers exploring emerging technologies.

The team behind the new AI center explained that the generative AI would utilize the algorithm technology to create unique content in audio, image, text, video, and coding sectors. According to the Amazon report, the tech firm has selected a few companies which will be the first to use the AI center.

Per the announcement, Highspot, Ryanair, Twilio, and Lovely Planet were selected by the AWS team for the first trial of the AI center. AWS confirmed that the proposed AI center would be more of a program than a physical entity. 

Recently the cloud services sector has experienced fierce competition due to increasing demand. AWS anticipates that establishing the AI center will enable the company to gain a significant market share in the cloud service sector.

A study by Synergy Research Group illustrated that firms investing in cloud service solutions reached $63 million in Q1 of 2023, a 20% surge from the previous year. Reportedly Microsoft and Google were ranked top with the strongest growth rate year over year. The report indicated that Microsoft’s growth rate increased by 23% while Google jumped by 10%. Correspondingly, Amazon in Q1 garnered a 32% increase in growth rate.

Significance of Establishing AI Center

Speaking at the Bloomberg Tech Summit, the chief executive of AWS, Adam Selipsky, confessed that the Amazon team plans to serve its diverse users at zero cost. He added that the AWS team will leverage their expertise to create a generative AI that will outdo others in the market.

The Amazon team recently invested heavily in launching an AI solution called Bedrock. During the launch of the Bedrock platform, the Amazon team aimed at enabling the customers to create a chatbot that resembles OpenAI’s ChatGPT.

In the latter, the Amazon team announced plans to debut Titan, a unique AI-powered platform linked to two main foundational models which utilize Amazon Machine Learning technology.  

Amazon Reveals Next Move

Nonetheless, the Amazon team plans to recruit more data scientists, architects, and engineers in the coming days. Over the past, the Amazon team has managed to cement its market share considerably due to its customer-centric culture. Selipsky stated that Amazon had focused more on the customer and had laid plans to work closely with the user to meet the common goal.

In the quest to meet the customer’s ever-changing needs, the Amazon team invested in manufacturing AI chips to supplement the graphic processing units (GPUs) produced by Nvidia. Recently the market demand for AI chips has gradually increased, necessitating Nvidia and Amazon to increase the supply of AI chips.

In a statement, Selipsky confirmed that a global shortage of compute storage is crucial in developing generative AI tools and machine learning technologies. He observed that most AI users are impatient even though the Amazon team plans to find possible solutions for the supply challenges.

Lately, the current economic uncertainty has limited the customers purchasing power on cloud services. He stated that the customer’s purchasing habits had witnessed some sudden changes since most customers have shifted to cost optimization. 

The CEO confessed that due to the changes in customers’ purchase patterns, it was hard to predict where the next trend would be. 

In an earlier report, Selipsky had projected that AI would become the next big thing in the innovation sector. He admits that AI technology will bring more customers on board.

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