The cloud market leader is at risk of falling behind in the AI race.
(Photo: Reuters)
san francisco Amazon invented the global cloud business and is still the market leader with its AWS division, ahead of Microsoft and Google. But now artificial intelligence (AI) is the big topic for the three technology giants – and since the launch of ChatGPT Microsoft has claimed the leading role here.
The OpenAI language models set the pace in the industry. CEO Satya Nadella has geared Microsoft towards close cooperation with the ChatGPT maker and has invested more than ten billion dollars in the San Francisco start-up. Microsoft can give its cloud customers special access that no provider has. Google has followed up with its own LLaMA language models.
Now Amazon wants to catch up with a number of initiatives. “We are well positioned,” said AWS manager Swami Sivasubramanian. He explains to the Handelsblatt how the group wants to expand its role. Because Amazon lacks a unique selling proposition, like Microsoft and Google have.
However, the group wants to turn this disadvantage into an advantage. Through the Bedrock platform, Amazon offers its cloud customers access to a range of language models from OpenAI competitors such as AI21 Labs, Anthropic and Stability AI.
Customers didn’t want to be locked into a model, they wanted freedom, said Sivasubramanian, who heads machine learning, database and analytics at AWS and is one of Amazon’s AI thought leaders.
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The group is also investing $100 million in a new innovation center. Among other things, the facility will offer free workshops and training courses. The center will help Amazon customers achieve their AI goals, says Sivasubramanian.
AI: Amazon’s “Titan” language model is intended to challenge OpenAI and Google
Amazon has also announced its own language model called “Titan”, which is intended to challenge OpenAI and Google. Unlike the competition, however, the model is not yet available to the general public. “We will make Titan available through Bedrock,” announced Sivasubramanian. The first customers already have access, and this will be extended to other customers in the coming months.
Analysts and industry experts are undecided whether the initiatives will be enough to push Amazon forward in the race for artificial intelligence dominance. Investment bank Wedbush’s Dan Ives said, “Microsoft is leading the AI arms race, the next step is monetization.”
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Microsoft’s lead in the field of AI solutions will soon be reflected in higher margins. Unlike Amazon and Google, Microsoft doesn’t break down gains or losses for its cloud division.
AWS is seen by investors as a latecomer when it comes to AI, according to Morgan Stanley analyst Brian Nowak. In his opinion, however, the cloud division has opportunities to benefit from the growing artificial intelligence business.
Not only the range of general language models and data is decisive for success, but models that are optimized for individual business applications. And Amazon is well positioned in this area.
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