Can Amazon Overtake Microsoft And Google In The AI Race?

Get ready for the technological showdown of the century! (Hint: it has to do with AI!)

Amazon, the retail and cloud computing titan, is challenging Microsoft and Google in the artificial intelligence (AI) arena.

In an interview with CNBC, Amazon's CEO Andy Jassy made some exciting revelations.

It looks like Bing (Microsoft), Bard (Google) and ChatGPT (OpenAI) have gained the lead in AI, while Amazon lags far behind. Yet, Amazon’s CEO Andy Jassy doesn't think the company should be written off in the AI race just yet.

The idea that Amazon is falling behind in artificial intelligence while rivals Microsoft and Google surge ahead was disputed by Jassy in a wide-ranging interview with CNBC. He compared the situation to the "hype cycle" preceding the "substance cycle."

"I think most people are focused on the applications, you know, things like ChatGPT brought everybody's awareness up," Jassy told Jon Fortt in an interview broadcast on "Closing Bell Overtime."
 
Amazon may appear to be playing catch-up in the battle for AI supremacy but are actually taking a methodical and shrewd approach.

Look at what Jassy told CNBC:
 

• Where Is Amazon Putting Its Money?

  According to Jassy, Amazon will be investing in AI across the board as they believe AI programs can enhance "virtually every customer experience." He singled out Amazon Web Services as a company that stands to gain in the long run from all the AI hype.
  
  Bedrock, AWS's recently introduced Generative AI service, allows customers to use Amazon and other companies' large language models to create their own chatbots and image-generation services.

• Amazon's Trump Card: Custom-built AI Processors

  Inferentia and Trainium are AWS's proprietary AI chips designed to simplify the deployment of large language models on the cloud for software engineers. The market for artificial intelligence chips is now dominated by Nvidia, which Amazon is competing with. Amazon's Bedrock develops its own chips and other services such as CodeWhisperer, which creates and suggests code for developers, give them a significant advantage in the AI market. Amazon's chips will be "much better price-performance than you'll find anywhere else," according to Jassy.

 
Amazon, with all its might, is looking to claim the AI crown from Microsoft, Google and OpenAI. Will they succeed? Let us know your thoughts in the comments section below!