Amazon touts its low-cost cloud computing in generative AI race By Reuters

By Jeffrey Dastin

AUSTIN (Reuters) – A key method that Amazon (NASDAQ:)’s cloud division goals to set itself other than rivals perceived to have a leg up on synthetic intelligence is by competing on worth, an government mentioned on Tuesday.

The AI fashions behind a viral chatbot like ChatGPT require immense computing energy to coach and function, the sorts of prices Amazon Internet Providers (AWS) is nice at decreasing, mentioned Dilip Kumar, vp overseeing its purposes group.

A possible enhance is that the corporate, like Google (NASDAQ:), has proprietary chips for AI.

“These fashions are costly,” Kumar mentioned on the Reuters MOMENTUM convention in Austin. “We’re taking up plenty of that undifferentiated heavy lifting, in order to have the ability to decrease the associated fee for our prospects.”

The world’s largest cloud supplier by income faces a tall problem. Rivals Microsoft (NASDAQ:) and Google have marketed greater profile, proprietary know-how, capturing mindshare and a few enterprise within the sector’s doubtlessly profitable AI contest.

Amazon’s competitors has likewise centered on lowering prices and has marketed free previews of such know-how, although last pricing remained unclear.

On high quality, Kumar didn’t reply how Amazon’s family of AI fashions often known as Titan stacks up in opposition to its extra well-known counterparts such because the GPT sequence from Microsoft-backed OpenAI or Google’s PaLM.

He as a substitute pointed to different Amazon traits, similar to “our particular method of coping with privateness, our particular method of coping with accuracy,” at a time when considerations abound about what occurs to confidential knowledge given to AI and the know-how’s tendency to generate incorrect data.

As well as, because the cloud business’s largest participant, “extra corporations of all sizes have (their) knowledge already in AWS,” he mentioned, making it a cause to make use of its AI.

Like Google, Amazon is advertising the know-how of different outstanding startups to present prospects alternative.

The promise of AI apart, Amazon has confronted unsure financial situations and slowing cloud income development within the close to time period. Requested how Amazon’s price range planning for 2024 is progressing, Kumar mentioned of corporations typically: “We’re in a cycle the place the spending is tight.”