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Amazon (AMZN) Bolsters Generative AI Efforts With NVIDIA
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Amazon (AMZN - Free Report) is bringing advanced supercomputing infrastructure, software and services to aid customers with generative artificial intelligence (“AI”) innovations in collaboration with NVIDIA (NVDA - Free Report) .
The latest extension of the partnership with NVIDIA will allow Amazon’s cloud computing platform, Amazon Web Services (“AWS”), to offer NVIDIA GH200 Grace Hopper Superchips with new multi-node NVLink technology.
The GH200 NVL32 multi-node platform is designed to connect 32 Grace Hopper Superchips with NVIDIA NVLink and NVSwitch technologies into one instance, which will be available on Amazon Elastic Compute Cloud (Amazon EC2) instances.
The platform will also be supported by AWS Nitro System and Amazon EC2 UltraClusters, thus delivering robust scalability to customers.
This apart, Amazon strives to accelerate the training of generative AI and large language models by hosting NVIDIA DGX Cloud, an AI-training-as-a-service on AWS.
In addition, both companies are gearing up to design an ultrafast GPU-powered AI supercomputer through Project Ceiba. The supercomputer will be backed by GH200 NVL32 and Amazon EFA interconnect.
We note that the latest collaboration is likely to aid AWS in delivering an enhanced generative AI experience to customers.
Apart from the abovementioned endeavors, Amazon intends to expand Amazon EC2 instances with the support of NVDA.
AWS will introduce three instances, namely P5e, G6 and G6e instances, which will powered by NVIDIA H200 Tensor Core, NVIDIA L4 and NVIDIA L40S GPUs, respectively.
The underlined partnership also brings NVIDIA software, namely NVIDIA NeMo Retriever and NVIDIA BioNeMo, to AWS to accelerate generative AI development for custom models.
Bottom Line
We believe the latest move bodes well for Amazon’s growing efforts toward bolstering its generative AI efforts.
Recently, AWS announced the general availability of its fully managed service called Amazon Bedrock, which provides seamless access to high-performing foundation models from AI companies through an API.
The company also made the Amazon Titan Embeddings model generally available. It added Meta’s Llama 2 to Amazon Bedrock as a new model, which will be available through API.
AWS unveiled a new capability of Amazon CodeWhisperer, which is designed to offer generative AI-powered customized code suggestions by leveraging an organization's own internal codebase.
Growing generative AI efforts 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 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 73.9% on a year-to-date basis.
Image: Bigstock
Amazon (AMZN) Bolsters Generative AI Efforts With NVIDIA
Amazon (AMZN - Free Report) is bringing advanced supercomputing infrastructure, software and services to aid customers with generative artificial intelligence (“AI”) innovations in collaboration with NVIDIA (NVDA - Free Report) .
The latest extension of the partnership with NVIDIA will allow Amazon’s cloud computing platform, Amazon Web Services (“AWS”), to offer NVIDIA GH200 Grace Hopper Superchips with new multi-node NVLink technology.
The GH200 NVL32 multi-node platform is designed to connect 32 Grace Hopper Superchips with NVIDIA NVLink and NVSwitch technologies into one instance, which will be available on Amazon Elastic Compute Cloud (Amazon EC2) instances.
The platform will also be supported by AWS Nitro System and Amazon EC2 UltraClusters, thus delivering robust scalability to customers.
This apart, Amazon strives to accelerate the training of generative AI and large language models by hosting NVIDIA DGX Cloud, an AI-training-as-a-service on AWS.
In addition, both companies are gearing up to design an ultrafast GPU-powered AI supercomputer through Project Ceiba. The supercomputer will be backed by GH200 NVL32 and Amazon EFA interconnect.
We note that the latest collaboration is likely to aid AWS in delivering an enhanced generative AI experience to customers.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
More on the Headlines
Apart from the abovementioned endeavors, Amazon intends to expand Amazon EC2 instances with the support of NVDA.
AWS will introduce three instances, namely P5e, G6 and G6e instances, which will powered by NVIDIA H200 Tensor Core, NVIDIA L4 and NVIDIA L40S GPUs, respectively.
The underlined partnership also brings NVIDIA software, namely NVIDIA NeMo Retriever and NVIDIA BioNeMo, to AWS to accelerate generative AI development for custom models.
Bottom Line
We believe the latest move bodes well for Amazon’s growing efforts toward bolstering its generative AI efforts.
Recently, AWS announced the general availability of its fully managed service called Amazon Bedrock, which provides seamless access to high-performing foundation models from AI companies through an API.
The company also made the Amazon Titan Embeddings model generally available. It added Meta’s Llama 2 to Amazon Bedrock as a new model, which will be available through API.
AWS unveiled a new capability of Amazon CodeWhisperer, which is designed to offer generative AI-powered customized code suggestions by leveraging an organization's own internal codebase.
Growing generative AI efforts 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 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 73.9% on a year-to-date basis.
Zacks Rank & Other Stocks to Consider
Currently, Amazon carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are Badger Meter (BMI - Free Report) and Arista Networks (ANET - Free Report) . While Badger Meter sports a Zacks Rank #1 (Strong Buy), Arista Networks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Badger Meter have gained 57% in the year-to-date period. BMI’s long-term earnings growth rate is currently projected at 20.39%.
Shares of Arista Networks have surged 79.4% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 19.77%.