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Amazon (AMZN) Bolsters Generative AI Efforts With Amazon Q

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Amazon’s (AMZN - Free Report) cloud-computing arm, Amazon Web Services (“AWS”), unveiled a generative AI-powered chatbot, Amazon Q.

Notably, the AI-powered assistant provides quick answers and helps in content creation and action-taking based on a customer's information repositories, code and enterprise systems.

Further, Amazon Q streamlines tasks, accelerates decision-making and fosters creativity by providing personalized information and advice tailored to individual user identities, roles and permissions.

Additionally, Amazon Q, trained on AWS' internal code, will be added to Amazon's cloud, business intelligence software, call center and logistics programs, providing customizable assistance to developers, call center workers and logistics managers.

Also, AWS is integrating Amazon Q into several other servers and applications, namely Amazon QuickSight, Amazon Connect and AWS Supply Chain, to provide customers with tailored solutions through enhanced generative AI capabilities.

The company's recent move is expected to boost employee engagement, which in turn will likely drive AWS' momentum among various corporate clients. Already companies like Accenture, BMW Group and Gilead have shown interest in Amazon Q.

Growing Generative AI Efforts

Apart from the latest move, Amazon recently unveiled Titan Image Generator, a generative AI model that can create new or customize existing images, currently available in preview on Bedrock's AI development platform.

Further, the company partnered with NVIDIA (NVDA - Free Report) , combining advanced infrastructure, software and services to power customers' generative AI innovations, including NVIDIA's multi-node systems, AWS Nitro System and EFA interconnect.

Additionally, the strategic collaboration with NVIDIA will accelerate the training of generative AI and large language models by hosting NVIDIA DGX Cloud, an AI training-as-a-service on AWS.

Also, Amazon partnered with Anthropic to integrate the latter’s latest AI language model, Claude 2.1, to Amazon Bedrock, its AI-powered solution designed to accelerate the deployment of generative AI-backed foundation models, offering a 200K token context window and improved accuracy for processing text-heavy documents.

All the above-mentioned endeavors will likely strengthen Amazon’s presence in the booming generative AI space.

Per a Fortune Business Insights report, the global generative AI market size is expected to reach $667.96 billion by 2030, witnessing a CAGR of 47.5% between 2023 and 2030.

Growing prospects in the promising generative AI market are expected to aid it in winning investors’ confidence in the near term.

Notably, AMZN’s shares have gained 74.5% in the year-to-date period compared with the industry’s growth of 49.1%.

Intensifying Competition

We note that the latest move will allow this Zacks Rank #2 (Buy) company to compete well with some notable industry players like Microsoft (MSFT - Free Report) and Alphabet (GOOGL - Free Report) , which are also making concerted efforts to bolster their generative AI efforts.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Microsoft, which has taken the world by storm on the back of ChatGPT, is gaining on the integration of OpenAI’s next-generation LLM — GPT-4 — into its search engine Bing and browser Edge.

Notably, Microsoft announced OpenAI's DALL-E 3 AI image-synthesis model, which is fully integrated with ChatGPT and challenges previous models by rendering images with complex descriptions and handling in-image text generation.

Further, MSFT plans to incorporate the DALL-E 3 text-to-image model into Bing Chat, enabling users to create images directly in a chat.

Meanwhile, Alphabet’s Google is also enjoying the growing momentum of its chatbot, Bard.

Further, Google integrated experimental generative AI features into its search engine, known as the Search Generative Experience, which generates detailed summaries based on Internet and digital sources.

Additionally, Google launched Duet AI, a generative-AI-backed helper for Gmail, Drive and Docs, available for organizations using Google Workspace, offering meeting assistance, document summarizer and personalization for Gmail's smart replies.

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