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Amazon's (AMZN) New Generative AI Efforts Boost AWS Offerings

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Amazon (AMZN - Free Report) is leaving no stone unturned to bolster its generative AI capabilities on the back of its cloud computing arm, Amazon Web Services ("AWS").

This is evident from AWS’ latest generative AI advancements.

AWS announced the general availability of its fully managed service called Amazon Bedrock, which provides seamless access to high-performing foundation models (FM) from AI companies through an API.

The company 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 capability of Amazon CodeWhisperer, which is designed to offer generative AI-powered customized code suggestions by leveraging an organization's own internal codebase.

It released a preview of the new Generative BI dashboard capabilities of Amazon QuickSight. This is expected to drive AWS’ momentum among business analysts.

All these efforts bode well for the company’s growing efforts toward enriching its AWS portfolio with generative AI technology as well as expanding its overall cloud offerings.

Amazon.com, Inc. Price and Consensus

 

Amazon.com, Inc. Price and Consensus

Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote

Growing Generative AI Efforts

The latest move by Amazon bodes well for its persistent efforts to boost its presence in the booming generative AI space.

Apart from these endeavors, Amazon’s recent investment plans in Anthropic remain noteworthy. Amazon will invest $4 billion to acquire a minority stake in Anthropic. This investment will allow AWS to provide access to Anthropic’s future FMs to its customers, which will be available through Amazon Bedrock.

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 54.2% 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.

Competitive Scenario

The latest Anthropic investment plan by Amazon is likely to give tough competition to Microsoft (MSFT - Free Report) , which has invested billions in OpenAI.

Microsoft’s continuous efforts to boost its generative AI capabilities remain noteworthy. It 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 - Free Report) Google and Adobe (ADBE - Free Report) , which are 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.

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