Amazon is making a strong bid to catch up in the ongoing generative artificial intelligence (AI) race sparked by ChatGPT, pitting itself against tech giants like Microsoft and Google.
On Thursday, June 22, Eastern Time, Amazon announced that its cloud division, Amazon Web Services (AWS), has rolled out a new initiative called the "AWS Generative AI Innovation Hub." Backed by a $100 million investment, the hub has already initiated collaborations with two customers, Highspot and Twilio.
Contrary to what the term suggests, Amazon clarified that the hub isn't a physical entity, but a project. Its purpose is to connect AWS-affiliated data scientists, strategists, engineers, and solution designers with customers and partners. The end goal is to aid businesses in leveraging generative AI technology to accelerate their pace of innovation and success.
Sri Elaprolu, senior data science manager at AWS and the head of the AI innovation hub, disclosed that the $100 million investment would exclusively fund "personnel, technology, and processes" related to generative AI. This initiative will support collaborations with AWS customers, assisting them in conceptualizing, designing, and launching new generative AI products and services.
Elaprolu indicated that the AI Innovation Hub would initially prioritize collaborations with customers who had previously submitted generative AI plans, objectives, or requests for assistance to AWS. The hub will also focus on organizations within industries like financial services, healthcare and life sciences, media and entertainment, automotive and manufacturing, energy and utilities, and telecommunications.
Some have pointed out that with AWS sitting on a $64 billion cash reserve and annual operating expenses of $5 trillion, a $100 million investment might seem like a drop in the ocean. However, this investment underscores AWS's acknowledgment of the current significance of generative AI and the need to counter competitors Microsoft and Google.
Adam Selipsky, CEO of AWS, likened the competition to a 10,000-meter race, stressing the importance of staying in the competition, despite the varying approaches of different competitors.
He asserted that AI is set to be the next wave of innovation in the cloud sector, driving more customers to use the cloud for realizing generative AI. He argued that AWS provides a level of trustworthiness in offering generative AI, a feature not matched by other competitors.
On the current global shortage of chips for AI applications, Selipsky forecasted improvements in the availability of computational power for generative AI and machine learning in the coming months.
Furthermore, Selipsky projected a possible slowdown in cloud spending due to economic uncertainty. He said it's hard to predict when this trend will end, with many customers still in the process of cost optimization, adding a layer of complexity to the situation.
