Amazon to invest $100M in generative AI center

AWS is constructing a $100 million AI facility in response to the growing competition in cloud infrastructure services.
Amazon’s cloud division, known as AWS, is investing $100 million in an initiative to catch up with Microsoft and Google in the field of generative artificial intelligence.

As reported by Bloomberg, the forthcoming AWS Generative AI Innovation Center will facilitate collaboration between Amazon’s AI and machine learning experts and clients who want to develop applications based on the latest technologies. Generative AI employs algorithms to generate fresh content, such as audio, code, images, texts, simulations, and videos.

Amazon has announced that companies like Highspot, Twilio, Ryanair, and Lonely Planet will be among the first to utilize the innovation center. By establishing this new facility, the company aims to increase its sales of cloud services in the face of intensifying competition within the cloud infrastructure market.

According to a recent analysis by Synergy Research Group, global enterprise spending on cloud solutions reached $63 billion in the first quarter of 2023, representing a 20% increase compared to the same quarter last year.

Microsoft and Google demonstrated the highest year-over-year growth rates, capturing 23% and 10% of the worldwide market share, respectively. Amazon, the leading provider of cloud infrastructure, maintained its 32% market share in Q1.
During Bloomberg’s Tech Summit, AWS CEO Adam Selipsky stated, “We will offer the expertise of our internal AWS experts at no cost to numerous AWS customers, focusing on those with a significant AWS presence, and assist them in accelerating their efforts to actualize generative AI, moving beyond mere discussions.”

As part of its strategy to compete against major tech rivals, Amazon recently introduced Bedrock, an AI solution that enables customers to build their models similar to ChatGPT. The company also announced an upcoming project called Titan, which encompasses two new foundational models developed by Amazon Machine Learning.

Job postings for AI engineers on LinkedIn indicate that Amazon is also preparing to implement an AI-powered “search” feature with a ChatGPT-like interface for its online web store.

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