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AMZN Ups Generative AI Game: Should MSFT, GOOGL & Others Worry
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Generative AI has created a niche in this data-driven world on the back of the growing proliferation of large language model (LLM) based chatbots. More precisely, ChatGPT, a chatbot from the Microsoft (MSFT - Free Report) backed startup OpenAI, which has turned out to be the fastest-growing app in history, has taken the world by storm.
Its monthly active user base reached the 100-million mark in January, just two months after its launch. This huge success has been able to lure tech giants like Alphabet’s (GOOGL - Free Report) Google, Baidu (BIDU - Free Report) and Alibaba (BABA - Free Report) , all of which have recently launched their chatbots to counter ChatGPT.
However, one can not ignore the cloud giant — Amazon (AMZN - Free Report) — when discussing AI and its future scope. The company, which was working on its language model and making concerted efforts to develop a ChatGPT rival all these days, has finally made its move in the generative AI battle.
The company’s cloud-computing arm, Amazon Web Services (AWS), unveiled an AI-powered solution — Amazon Bedrock. The solution is designed to accelerate the deployment of generative AI-backed foundation models (FM). Further, the company introduced its language model called Amazon Titan.
Although the company has marked itself late in the race, its latest move holds the potential to take on the moat of Microsoft and pose a serious threat to the other tech behemoths mentioned above.
It has taken the generative AI competition to another level. This positions Amazon well to capitalize on the growth prospects present in the market for this particular technology.
According to a report from Allied Market Research, the generative AI market is expected to hit $126.5 billion by 2031, registering a CAGR of 32% between 2022 and 2032.
Year-to-Date Price Performance
Image Source: Zacks Investment Research
Amazon’s Big Game
Amazon is poised to make its big AI play on the heels of AWS strength and, more importantly, Bedrock capabilities.
Amazon Bedrock provides seamless access to high-performing FMs from AI startups like AI21 Labs, Anthropic and Stability AI, among others, through an API. With these FMs, developers can build and scale their generative AI-based applications.
Apart from the FMs from these startups, Bedrock also provides access to FMs of Amazon Titan, a ChatGPT rival from the e-commerce giant. Titan FMs can remove content from the data and user input and filter model outputs containing unwanted content. Moreover, customers will be able to customize Titan models with their own data.
Titan Text, the LLM of Amazon Titan, handles tasks including summarization, text generation like creating blogs, open-ended question-answer and information extraction.
Further, Amazon Titan comes with another LLM called Titan Embeddings, which translates text inputs into numerical representations containing the semantic meaning of the text.
It can be concluded that Amazon, which carries a Zacks Rank #3 (Holds), has positioned itself well in the chatbot and generative AI race on the back of Bedrock and Titan.
Should MSFT & GOOGL Worry?
Microsoft, considered one of the major investors in OpenAI, is gaining significantly from the rapid deployment of ChatGPT.
The Zacks Rank #3 company recently integrated OpenAI’s next-generation LLM — GPT-4 — into its search engine Bing and its browser Edge to deliver a ChatGPT-like experience to the users.
Meanwhile, Google is also making concerted efforts toward bolstering features of its recently launched chatbot, Bard, which is based on the Language Model for Dialogue Applications (LaMDA) and produces blocks of text instantly.
The company intends to integrate Bard into its search engine. It has already started testing Bard into Gmail with a limited number of trusted users. Google’s parent Alphabet currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Microsoft and Google are selling their underlying technologies through their cloud platforms to capture a huge market share.
However, Amazon’s offering of FMs from various AI startups as well as its own first-party language models to the developers, differentiates it from Microsoft and Google. Hence, Amazon’s latest move poses a challenge to the latter two.
How BIDU & BABA are Placed?
Amazon’s launch of Bedrock and Titan has also pepped up the battle for the China bigwigs – Baidu & Alibaba, which are also making solid endeavors to reap benefits from the booming generative AI market.
Baidu, sporting a Zacks Rank #1 (Strong Buy), launched its generative AI chatbot — Ernie Bot — which is capable of solving mathematics queries, responding to questions regarding Chinese literature and generating images and videos. The chatbot can generate audio in different Chinese dialects. Further, the company intends to integrate Ernie Bot into its search service.
Alibaba, a Zacks Rank #3 company, recently introduced its LLM — Tongyi Qianwen — which is currently available for beta testing. The company has already opened registration for businesses to test Tongyi Qianwen’s chatbot.
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AMZN Ups Generative AI Game: Should MSFT, GOOGL & Others Worry
Generative AI has created a niche in this data-driven world on the back of the growing proliferation of large language model (LLM) based chatbots. More precisely, ChatGPT, a chatbot from the Microsoft (MSFT - Free Report) backed startup OpenAI, which has turned out to be the fastest-growing app in history, has taken the world by storm.
Its monthly active user base reached the 100-million mark in January, just two months after its launch. This huge success has been able to lure tech giants like Alphabet’s (GOOGL - Free Report) Google, Baidu (BIDU - Free Report) and Alibaba (BABA - Free Report) , all of which have recently launched their chatbots to counter ChatGPT.
However, one can not ignore the cloud giant — Amazon (AMZN - Free Report) — when discussing AI and its future scope. The company, which was working on its language model and making concerted efforts to develop a ChatGPT rival all these days, has finally made its move in the generative AI battle.
The company’s cloud-computing arm, Amazon Web Services (AWS), unveiled an AI-powered solution — Amazon Bedrock. The solution is designed to accelerate the deployment of generative AI-backed foundation models (FM). Further, the company introduced its language model called Amazon Titan.
Although the company has marked itself late in the race, its latest move holds the potential to take on the moat of Microsoft and pose a serious threat to the other tech behemoths mentioned above.
It has taken the generative AI competition to another level. This positions Amazon well to capitalize on the growth prospects present in the market for this particular technology.
According to a report from Allied Market Research, the generative AI market is expected to hit $126.5 billion by 2031, registering a CAGR of 32% between 2022 and 2032.
Year-to-Date Price Performance
Image Source: Zacks Investment Research
Amazon’s Big Game
Amazon is poised to make its big AI play on the heels of AWS strength and, more importantly, Bedrock capabilities.
Amazon Bedrock provides seamless access to high-performing FMs from AI startups like AI21 Labs, Anthropic and Stability AI, among others, through an API. With these FMs, developers can build and scale their generative AI-based applications.
Apart from the FMs from these startups, Bedrock also provides access to FMs of Amazon Titan, a ChatGPT rival from the e-commerce giant. Titan FMs can remove content from the data and user input and filter model outputs containing unwanted content. Moreover, customers will be able to customize Titan models with their own data.
Titan Text, the LLM of Amazon Titan, handles tasks including summarization, text generation like creating blogs, open-ended question-answer and information extraction.
Further, Amazon Titan comes with another LLM called Titan Embeddings, which translates text inputs into numerical representations containing the semantic meaning of the text.
It can be concluded that Amazon, which carries a Zacks Rank #3 (Holds), has positioned itself well in the chatbot and generative AI race on the back of Bedrock and Titan.
Should MSFT & GOOGL Worry?
Microsoft, considered one of the major investors in OpenAI, is gaining significantly from the rapid deployment of ChatGPT.
The Zacks Rank #3 company recently integrated OpenAI’s next-generation LLM — GPT-4 — into its search engine Bing and its browser Edge to deliver a ChatGPT-like experience to the users.
Meanwhile, Google is also making concerted efforts toward bolstering features of its recently launched chatbot, Bard, which is based on the Language Model for Dialogue Applications (LaMDA) and produces blocks of text instantly.
The company intends to integrate Bard into its search engine. It has already started testing Bard into Gmail with a limited number of trusted users. Google’s parent Alphabet currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Microsoft and Google are selling their underlying technologies through their cloud platforms to capture a huge market share.
However, Amazon’s offering of FMs from various AI startups as well as its own first-party language models to the developers, differentiates it from Microsoft and Google. Hence, Amazon’s latest move poses a challenge to the latter two.
How BIDU & BABA are Placed?
Amazon’s launch of Bedrock and Titan has also pepped up the battle for the China bigwigs – Baidu & Alibaba, which are also making solid endeavors to reap benefits from the booming generative AI market.
Baidu, sporting a Zacks Rank #1 (Strong Buy), launched its generative AI chatbot — Ernie Bot — which is capable of solving mathematics queries, responding to questions regarding Chinese literature and generating images and videos. The chatbot can generate audio in different Chinese dialects. Further, the company intends to integrate Ernie Bot into its search service.
Alibaba, a Zacks Rank #3 company, recently introduced its LLM — Tongyi Qianwen — which is currently available for beta testing. The company has already opened registration for businesses to test Tongyi Qianwen’s chatbot.