Amazon.com Inc AMZN is taking an all-encompassing approach to enterprise AI in an effort to better deliver the tools that customers need when they need them.
What To Know: Monday on CNBC’s “Closing Bell: Overtime,” Amazon Web Services (AWS) CEO Matt Garman stressed that there is so much more to AI than the chatbots which get most of the attention.
“It’s not just one application, it’s not just a chatbot that you can put on your website and have talk to your customers, which is a very cool application by the way, but many customers if they stop there, they’re not going to get the true value out of what this technology is bringing to them,” Garman said.
Amazon offers much more than just chatbot capabilities. AWS provides a set of services that help customers set up guardrails to build safe AI applications, combine multiple large language models together for optimal performance, index enterprise data to build sources of truth for answering questions and more, he explained.
Amazon has a diverse customer set using AWS and Amazon’s AI technology to help perform a wide range of tasks. Pfizer Inc PFE, for example, is using generative AI through AWS and Bedrock for drug discovery, Garman said, adding that the company recently estimated that AWS would save them $1 billion this year as they work towards finding and building new drug offerings.
According to Amazon’s website, Bedrock offers a choice of high-performing foundation models from leading AI companies through a single API, as well as a broad set of capabilities needed to build generative AI applications responsibly.
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New reports surfaced this week suggesting Amazon could spend about $1 billion building out its AI offerings this year. When asked about the costs, Garman told CNBC that Amazon has a massive advantage over the competition because it has experience cutting costs at scale.
Amazon has been working on AI for years as the company is always looking ahead to what will come next and that hasn’t slowed down, the AWS CEO said.
“We have teams who think about three, five, seven years down the road, what are our power footprints going to need? How do we make sure that we have enough? And the volumes are getting to be such that that’s a thing that we need to think about,” Garman said.
“AWS and Amazon overall has been the largest purchaser of renewable energy for the last several years in the world because we focus on how do we think ahead … we think about the same with regards to supply chain, we think about the same with regards to working with many of our partners. We think about memory, we think about storage, we think about processors, we think about networking — all of those pieces are super important for us so that customers don’t have to worry about it.”
AMZN Price Action: Amazon shares closed Monday up 2.04% at $197.20, according to Benzinga Pro.
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