Amazon To Launch AI Reasoning Model In June, Reinforcing AWS's AI Dominance

Amazon.Com Inc AMZN is reportedly developing its artificial intelligence model with advanced reasoning capabilities.

The company looks to release its upcoming AI model in June as part of the Nova series of generative AI models, Business Insider reports.

An AI reasoning model will help solve complex problems with multiple solutions, ‘thinking' through the steps via chain-of-thought techniques.

Also Read: Apple Partner Globalstar Teams Up With GCT Semiconductor to Power Satellite Messaging with IoT Chips

Amazon has reportedly adopted a hybrid reasoning approach, where the AI model can provide quick answers and more complex outputs after extended thinking.

Amazon-backed Anthropic recently announced it has developed a hybrid reasoning model, Claude 3.7 Sonnet. So far, it has invested around $8 billion in the Claude maker.

Amazon is also prioritizing making the Nova reasoning model competitive in pricing.

Amazon's AGI division, led by AI researcher Rohit Prasad, will build the new AI reasoning model.

Separately, GE Vernova Inc GEV and Amazon cloud unit Amazon Web Services, Inc (AWS) announced a strategic framework deal to support AWS's data center scaling to address increasing global energy demand, advance grid security and reliability, and decarbonize electric power systems.

GE Vernova will provide AWS with new offerings across various solutions to electrify and decarbonize data centers across North America, Europe, and Asia.

Recently, Amazon announced plans to invest about $100 billion in AI initiatives by 2025. CEO Andy Jassy said that most of the funds would go to AWS.

Wall Street firms, including DA Davidson, Wedbush, Bank of America, RBC Capital, Scotiabank, Benchmark, JMP, and Needham, highlighted that AWS is seeing growth in both AI and non-AI services after its fourth-quarter report, unlike Microsoft Corp MSFT Azure and Alphabet Inc GOOG GOOGL Google Cloud, which decelerated in the quarter.

According to analysts, AWS continues to be a long-term profit engine. Of all the hyperscalers, Amazon is pivoting fastest toward the generative AI future because the current CEO came from the cloud business.

Price Action: AMZN stock is down 1.2% at $202.42 at the last check on Tuesday.

Also Read: