What's Going On With Amazon Stock Monday?

In a nondescript Austin, Texas office, Amazon.Com, Inc AMZN is designing custom microchips, Inferentia and Trainium, for AWS' generative AI training and acceleration to bypass Nvidia Corp NVDA GPUs for large language model training.

Amazon Web Services CEO Adam Selipsky stressed the global demand for generative AI chips, including Amazon's designs, expressing its readiness to meet the surging demand, CNBC reports.

Also Read: Amazon's Cloud Unit Partners With ML Hub Hugging Face For More Accessible AI

Microsoft Corp MSFT invested $13 billion in OpenAI and quickly integrated generative AI models into its products. Alphabet Inc GOOG GOOGL Google launched Bard LLM and invested $300 million in OpenAI competitor Anthropic.

In April Amazon.Com launched its own Titan LLMs and Bedrock service for enhancing software using generative AI.

Industry analysts flagged Amazon's shift from creating markets to playing catch-up, mainly due to its delayed entry into the generative AI field compared to rivals.

Unlike Microsoft, Amazon's custom silicon chips, Trainium and Inferentia, hold the potential for differentiation in the generative AI realm, offering technical capabilities.

Amazon's chip-making journey began in 2013 with Nitro, specialized hardware that is now the most widely used AWS chip. Annapurna Labs was acquired in 2015, followed by the Arm-based server chip Graviton launch in 2018.

Trainium, launched in 2021, boasts a 50% price performance improvement in training machine learning models on AWS. Inferentia, released in 2019, focuses on low-cost, high-throughput, low-latency machine learning inference.

AWS's cloud dominance remains a significant advantage, allowing Amazon to assist its customers in creating value using generative AI.

Amazon's expansive developer tools for generative AI include Bedrock, offering access to LLMs from various providers, and AWS HealthScribe, which assists doctors in drafting patient visit summaries.

Amazon's focus on tool development over building direct competitors to existing products like ChatGPT is evident. AWS CEO Selipsky's announcement of a $100 million generative AI innovation center further illustrates Amazon's commitment to this field.

Price Action: AMZN shares closed lower by 0.11% at $138.41 on Friday.

Photo by Tony Webster via Flickr

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.