AWS is allocating $100 million in Generative AI to compete with Microsoft and Google

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Amazon’s cloud unit Amazon Web Services said yesterday that it is investing $100 million in a Generative Artificial Intelligence center to help firms use Generative AI.

The announcement shows AWS recognizes the importance of the current moment in generative AI space and the significance of being in the talks, alongside competitors Microsoft and Google.

AWS CEO Adam Selipsky said, “You ask yourself the question — where are the different runners three steps into a 10K race? Does it really matter? The point is, you’re three steps in, and it’s a 10K race.”

Amazon said, “The Company will add some data scientists, engineers, and solutions architects to the payroll.”

AWS said, “The Generative AI center is already working with Highspot, Twilio, RyanAir, and Lonely Planet. It’s a program rather than a physical center.”

Amazon enjoys a significant lead in the cloud infrastructure field. However, Microsoft has been investing billions in an alliance with OpenAI, and Google is moving rapidly to deploy AI tools it has built in-house for customers and businesses.

Selipsky said, “We are not concerned. The company has succeeded by listening to customers. Amazon has had many examples in its history where it said, we’re going to focus on customers and have a steadfast belief that we’re going to work with customers, we’re going to build what they want. And if people want to perceive us in a certain way, we’re misunderstood, that’s OK, as long as customers understand where we’re going.”

Amazon currently faces the challenge of meeting the demand for AI chips.

Selipsky added, “I think the entire world has a shortage in the short term of computing capacity for doing generative AI and machine learning right now. People are impatient, and the situation will improve in the next few months.”

Selipsky reckoned about the slowdown in customer spending on cloud, “A lot of customers are through their cost optimization, but there have been other customers who are still right in the middle of it. It’s hard to predict exactly when that trend will be over. But we’re still in the middle of it.”

He insisted the AI trend is real. He said, “AI is going to be this next wave of innovation in the cloud. It’s going to be the next big thing that pushes even more customers to want to be in the cloud. Really, you need the cloud for generative AI.”

Selipsky sees that AWS provides significant credibility in offering generative AI services that elude others in the competition.

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