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Amazon The cloud unit said Thursday it is allocating $100 million for a center to help companies use generative AI, the technology that has been launched in the months since OpenAI unleashed its ChatGPT software on the public.
It’s a small investment for a company with $64 billion in cash and half a trillion dollars in operating expenses annually. But the announcement shows that Amazon Web Services understands the importance of the present moment in generative AI and the importance of being in the conversation alongside competitors. Microsoft And Google.
“You ask yourself the question – where are the different runners three steps in the 10K race?” AWS CEO Adam Celebski said in an interview this week with CNBC. “Does that really matter? The point is, you’re going to enter a three-step, 10-kilometer sprint.”
As part of the recent announcement, Amazon said it will add some data scientists, engineers, and solutions architects to the payroll. AWS said the hub is already working with two clients, Highspot and Twilio. The company told CNBC that it is a “software” and not an actual hub.
Amazon, which has overtaken Microsoft and Google in leasing servers and data storage to other companies and organizations, has a leading role in the cloud infrastructure market. However, these competitors have had more nimble approaches to generative AI, even though Amazon has relied extensively on AI for years to display shopping recommendations and power Alexa voice assistant.
Microsoft Spending billions on a layered alliance with OpenAI, and Google It is moving quickly to deploy its internally created AI tools to consumers and businesses.
Amazon does not have the first common large language model that can enable a chatbot or document summarizing tool.
Selipsky said he’s not worried. He joined the company in 2005, a year before the launch of AWS Core Compute and Storage Services. Echoing Amazon founder and longtime CEO Jeff Bezos, Celebski said the company succeeds by listening to customers.
“Amazon has had many examples in its history where it said, ‘We’re going to be customer focused and we have a firm belief that we’re going to work with customers, we’re going to build what they want,'” Celebski said. “And if people want to look at us a certain way, we’ll be misunderstood, that’s fine, as long as customers understand where we’re going.”
One of the challenges that Amazon is currently facing is meeting the demand for AI chips. The company has chosen to start building chips to complement its GPUs nvidiaPioneer in space. The two companies are racing to get more supply in the market.
“I think the whole world is short-term short-term in computing power to do generative AI and machine learning in general right now,” Celebski said. He added that people are running out of patience, and the situation will improve in the next few months.
Selipsky also calculates a slowdown in customer spending on the cloud, as companies prepare for continued economic uncertainty.
“A lot of customers are pretty much going through cost optimization, but there were other customers who were still in the middle of it,” he said. “It’s hard to predict exactly when this particular trend will end. But we’re still in the middle of it.”
However, he insists, the AI trend is real. For Amazon, that momentum applies to Bedrock’s generative AI service and Titan models as well as its new Innovation Center.
“Artificial intelligence will be the next wave of innovation in the cloud,” he said. “It’s going to be the next big thing that gets more customers to want to be in the cloud. Really, you need the cloud for generative AI.”
Also, the way Selipsky sees it, AWS provides a measure of credibility in delivering generative AI that sets itself apart from others in the space.
“I can’t tell you how many Fortune 500 companies I’ve spoken with that have ChatGPT blocked in the enterprise,” Selipsky said. “Because at least the initial versions of it didn’t have that concept of enterprise security.”
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