HomeIndustriesAWS relies on generative AI in a direct duel with Microsoft

AWS relies on generative AI in a direct duel with Microsoft

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Through its close alliance with OpenAI, Microsoft has been capable of outpace the remaining of the technology industry within the booming field of generative artificial intelligence.

But judging by the variety of announcements at Amazon Web Service's annual tech showcase event in Las Vegas this week, the AI ​​gap within the cloud computing world has narrowed. Microsoft's biggest cloud competitor has now deeply integrated generative AI into its computing platform and integrated the technology into a lot of its services, analysts said.

Like Microsoft and others, AWS is pushing deeper right into a latest era of AI-powered automation. The query now is whether or not customers are willing to entrust a few of their most vital functions to generative AI or invest serious money within the technology.

Amazon said in its latest earnings release that AI is already a “multibillion-dollar” business and growing at greater than one hundred pc. According to AWS CEO Matt Garman, AI is on its technique to becoming a core function in every enterprise application, potentially sparking a brand new wave of demand for the corporate's core computing infrastructure.

“It will need computing power, it would need storage, it would need databases and it would need inference as a key a part of that application,” he said in an interview with the Financial Times.

Still, Garman acknowledged that the high level of interest in generative AI within the two years since ChatGPT's launch has not yet translated into serious use of the technology in business. “A variety of customers have experimented lots,” he said. Most are actually attempting to discover the few uses of AI which may justify a serious investment.

AWS's announcements at its re:Invent conference on Tuesday in Las Vegas included a 3rd generation of its Trainium processors, which might be used to coach large language models. Apple said it used AWS chips to run a few of its services and had good results testing Trainium to coach its internal AI models.

Like other cloud firms, AWS still relies heavily on Nvidia's general purpose computing units. But the most recent developments show it’s now on par with Google, which trains its Gemini models on the in-house chips it has used for nearly a decade, said Patrick Moorhead, principal analyst at Moor Insights & Strategy. Combined with its other chips, including those for operating and training AI models, Amazon now has “the biggest number of homegrown chips” of any major cloud company, he added.

AWS has also narrowed the gap with Microsoft and OpenAI in terms of the models that function the muse for its AI services, analysts said. Garman said AWS has spoken to OpenAI about attempting to offer their models to its own cloud customers. Although OpenAI's exclusive alliance with Microsoft stands in the best way, he said he believes the 2 will discover a technique to work together in the long term.

Even Microsoft CEO Satya Nadella not talks about hosting OpenAI as an important competitive weapon. Instead, he recently claimed that LLMs have gotten a commodity and that the majority of the worth comes from the tools and services on top, suggesting that competition with its key cloud rivals AWS and Google is moving to a different level.

Meanwhile, on the event in Las Vegas, AWS demonstrated the way it has integrated AI into more of its own technologies and services to encourage customers to bring more of their applications and services to the cloud.

“The biggest challenge with AWS is how complex it’s and what number of services it provides,” said Steven Dickens, principal analyst at HyperFRAME Research. Adding AI to simplify things has led to “200 small successes,” he added. “None of this could be very sexy, nevertheless it is completely vital in on a regular basis life.”

One sign of how AI could change the competitive balance between cloud firms is AWS' try and use the technology to poach customers from Microsoft. It unveiled latest AI-powered tools to automate the tedious and time-consuming task of rewriting applications that run on Microsoft's Windows operating system to run within the AWS cloud.

AWS's direct targeting of Windows customers follows news first reported within the FT that the US Federal Trade Commission has opened an investigation into whether Microsoft used licensing restrictions to forestall customers from joining competing cloud providers change.

Echoing the complaints of others within the industry, Garman said Microsoft had offered its customers preferential rates in the event that they kept their applications by itself cloud quite than selecting one among its major competitors, claiming it had made “false concessions” to forestall an EU investigation into the difficulty last yr. But he also claimed that Microsoft's actions could backfire: “In some ways it's a tailwind for us since it doesn't deserve trust.”

Meanwhile, in the most recent try and push generative AI deeper into business, AWS also announced latest tools for organizing and coordinating groups of AI agents to perform more complex functions. Many of the tasks firms need to automate involve multiple steps, meaning they need a set of specialised agents to hold them out, said Vasi Philomin, vice chairman of generative AI at AWS.

But even Garman admits that the majority customers have just began eager about how AI tools like these could be integrated into their processes or how they may manage the risks.

“We’re still within the early stages of a variety of these items,” he said. “Users must determine when agents might be fully autonomous, when agents still need people within the loop, and when agents need guardrails around them.”

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