Amazon.com Inc (NASDAQ:AMZN) doubled down on its artificial intelligence (AI) offering at its annual AWS re:Invent event this week, where it unveiled a raft of new AI products.
In a report on Thursday, investment firm Wedbush described Amazon’s strategy in generative AI as triple-pronged, spanning three layers of the stack: infrastructure, foundation models, and applications.
According to analysts, Amazon’s primary goal is to provide more choice to its clients by offering foundation models for generative AI, both through its partners and its Titan suite of AI models, which are pre-trained on large datasets.
Its second goal is to enable faster adoption of AI by developing tools for easy access, and its third is to reduce costs and boost efficiency through its proprietary chips, as well as those developed by its partners, such as Nvidia Corporation (NASDAQ:NVDA).
Amazon will seek to optimise chips for training and inference applications, according to analysts at Wedbush.
Amazon Web Services (AWS) Chief Executive Officer Adam Selipsky delivered what analysts described as “an upbeat keynote presentation” this week, unveiling several new products, including the Amazon S3 Express One Zone, AWS Graviton4, Trainium2, and Amazon Q.
Selipsky said Amazon has expanded its partnership with Nvidia to bring Nvidia's latest hardware to Amazon EC2 and to make Nvidia's DGX cloud available as part of its web services.
AWS is expected to be the first cloud provider to bring Nvidia's GH200 Superchips to the cloud, after unveiling two proprietary accelerator systems for generative AI earlier this year, Trainium2 and Infernetia2.
Selipsky said while speaking at the event this week that Amazon's product breadth includes 60% more services and 40% more features than the next largest cloud provider, and that it operates three times as many data centres as rivals.
“Over two decades ago, Amazon bet that consumers want vast selection, fast delivery, and low prices,” Wedbush analysts said in the research note.
“Now, the company appears to be betting that its enterprise clients want similar qualities as they embrace generative AI.”
Analysts continue to expect AWS will 'reaccelerate' growth in the fourth quarter and fiscal 2024, with market consensus forecasting 13.2% year-on-year growth this quarter and a 17.9% boost next year.