Amazon Web Services (AWS), the cloud division of Amazon.com Inc (NASDAQ:AMZN), has pledged $100 million towards a new initiative to support businesses in utilising generative artificial intelligence (AI), signalling its commitment to staying relevant in the rapidly evolving AI landscape.
The story emerged from a CNBC interview with AWS chief executive, Adam Selipsky, and signals a ratcheting up of competition with rivals Microsoft and Google, which have taken an early lead in the booming AI market.
While it's a minor outlay for Amazon, which boasts sizable cash reserves and operational expenses, it signals a strategic move towards shaping its presence in the AI sphere.
Although AWS leads in the cloud infrastructure market, Microsoft and Google have made more notable strides in generative AI.
Despite facing challenges such as meeting AI chip demand and slowing cloud customer spending, AWS CEO Selipsky remains bullish about AI's transformative potential and its ability to drive more customers to the cloud.
The new AWS initiative is expected to include hiring additional data scientists, engineers, and solutions architects