Chips On the Table – Amazon’s Race for Generative AI 🤖

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Chips On the Table – Amazon’s Race for Generative AI

With Microsoft-backed ChatGPT transforming the future, mega-cap companies across tech have put together vast amounts of resources to capture generative AI market share. Following Chat-GPT’s overnight success, Google imminently released Bard, with beneficial vertical integrations into both Google Search and Workspace. The next company to successfully penetrate the space is e-commerce giant Amazon, however, through a different approach. Instead of creating its own consumer-facing generative AI tools, Amazon has recently focused on the infrastructure to power artificial intelligence. As a substitute for Nvidia’s hardware, Amazon developed their customer chips, labeled Inferentia and Trainium.

As the leader in market performance this year with a 185% return, Nvidia has been at the forefront of chip innovation. However, their high prices and limited quantities have opened the door for Amazon to compete for market share. Although Amazon released its bundle of AI tools for developers in April, several have noted the jump to chip manufacturing will give them leverage in the area with both a looming software and hardware presence. Alongside its dominance in the cloud space with AWS, Amazon is well-positioned to expand artificial intelligence through its preexisting customer base. With its entrance to silicon development beginning in 2013, Amazon is certainly becoming a major contender for the king of the future of technology: Generative AI.

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