Amazon ( AMZN Quick Quote AMZN - Free Report) is firing on all cylinders in the cloud computing space on the back of its growing generative AI efforts. This is evident from its latest investment plans in its OpenAI rival, Anthropic. Amazon will invest $4 billion to acquire a minority stake in Anthropic. Anthropic has selected Amazon Web Services (AWS) as its primary cloud provider to accelerate the development of its future foundation models (FM). More precisely, to build, train and deploy FMs, Anthropic will leverage AWS Trainium and Inferentia chips. Anthropic uses these FMs to power chatbots and other applications. Growing Generative AI Efforts
The latest move by Amazon bodes well for its growing efforts to boost its presence in the booming generative AI space.
The underlined investment will allow AWS to provide access to Anthropic’s future FMs to its customers. These FMs will be available through Amazon Bedrock, launched in the first half of this year. This, in turn, will enable Amazon developers and engineers to build new applications and enhance existing ones with generative AI technology. Apart from this, the company recently introduced the AWS Generative AI Innovation Center program, which helps connect customers across the world with AWS’ AI and machine learning experts to aid them in building and deploying generative AI solutions seamlessly. Customers will get step-by-step guidance from AWS and the AWS Partner Network in picking the right models, defining paths to navigate technical or business challenges, developing proof of concepts and making plans for launching solutions at scale. These endeavors are expected to aid Amazon in capitalizing on the immense growth prospects present in the generative AI market. A Bloomberg report shows that the underlined market is expected to reach $1.3 trillion by 2032, seeing a CAGR of 42% over a period of 2022-2023. Per an Allied Market Research report, the global generative AI market’s value is likely to hit $191.8 billion by 2032, witnessing a CAGR of 34.1% between 2023 and 2032. Amazon’s solidifying prospects in this promising market are likely to instill investor optimism in the stock. Amazon has returned 51.5% on a year-to-date basis. Currently, Amazon sports a Zacks Rank #1 (Strong Buy). You can see . the complete list of today’s Zacks #1 Rank stocks here Rising Competition
The latest Anthropic investment plan by Amazon is likely to give tough competition to
Microsoft ( MSFT Quick Quote MSFT - Free Report) , which has invested billions in OpenAI. Microsoft’s continuous efforts to boost its generative AI capabilities remain noteworthy. Microsoft recently integrated OpenAI’s next-generation Large Language Models (LLM) — GPT-4 — into its search engine Bing and browser Edge to deliver a ChatGPT-like experience to users. Microsoft Azure offers the Azure OpenAI Service, which enables the seamless application of LLM and generative AI techniques in various use cases. In addition to Microsoft, Alphabet’s ( GOOGL Quick Quote GOOGL - Free Report) Google and Adobe ( ADBE Quick Quote ADBE - Free Report) , which are also making concerted efforts to capitalize on generative AI prospects, are likely to witness stiff competition due to Amazon’s growing endeavors. Google, which forayed at the beginning of this year by unveiling its chatbot Bard, recently rolled out consulting services to bolster generative AI efforts. The new offerings include advice and tools through which Google Cloud strives to aid clients in adopting generative AI techniques. These tools are designed to help customers boost automation in their business operations by generating content and summarizing information with the power of AI. Adobe recently announced the commercial release of its family of creative generative AI models – Firefly. Adobe Firefly supports text prompts in over 100 languages, helps creators make several changes to their content, creates endless variations seamlessly and bolsters image generation capabilities.