In a recent announcement, Amazon, the world’s largest online retailer and one of the leading providers of cloud services, has committed $100 million to training its cloud customers in artificial intelligence (AI). But what are the reasons?
• Millions for AI training
• Customers should be extensively advised and trained
• Enormous long-term market potential for generative AI
The AWS Generative Innovation Center
Artificial intelligence (AI) is an ever-evolving technology that has the potential to redefine business operations across many industries. It offers opportunities to support data-based business decisions, to optimize customer service and to automate processes. In response to this development, Amazon has announced that it will create a new “AWS Generative Innovation Center” to help customers develop and implement new AI-based products. An investment of 100 million US dollars is planned for this project, as Bloomberg reports.
The main task of the AWS Generative Innovation Center will be to offer its own cloud services and to support customers in the development of generative AI applications. AWS is positioning itself as an alternative to other providers such as Microsoft’s Azure or Alphabet’s Google Cloud. To achieve this goal, the center plans to bring together Amazon customers and experts in the fields of AI and machine learning. These experts will help create customized solutions for clients across a variety of industries, including healthcare, financial services, and manufacturing.
Intensive training and support
Although Microsoft was able to gain an early advantage in cooperation with OpenAI, as Bloomberg reports, Amazon already presented its own generative AI tools earlier in the year. However, one customer who has trialled these products raised concerns about the completeness of the technology. According to Bloomberg, the investment could be interpreted as an attempt to close the technological gap with Microsoft Azure and Google Cloud.
With the support of generative AI specialists from the AWS team and the AWS partner network, the company plans to provide training and support customers in selecting suitable models. In addition, Amazon will advise customers on technical and business challenges, help develop proofs of concept, and develop plans for large-scale implementation of solutions. The Generative AI Innovation Center team will also provide guidance on ethical AI practices and offer advice on how to reduce costs by optimizing machine learning operations.
The market potential of generative AI
According to a report by Bloomberg Intelligence, the growth potential in the field of artificial intelligence is considerable. This rapidly evolving industry is expected to reach a market size of US$1.3 trillion over the next ten years at a CAGR of 42 percent. In the short term, training infrastructures in particular could benefit from this development, while in the medium to long term, digital displays, inference devices for large language models, and specialized software and services could come to the fore.
Bloomberg Intelligence research data suggests that growing demand for generative AI could potentially generate $280 billion in new software revenue. Companies like Amazon, NVIDIA, Microsoft, and Google could be seen as key beneficiaries as more workloads move to the public cloud. Given this fact, it seems logical that Amazon should focus on AI with the newly formed AWS Generative Innovation Center. However, it remains unclear which cloud provider will ultimately derive the greatest benefit from this development.
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