[1/3]Amazon Web Services Vice President Dilip Kumar asks Reuters Correspondent Jeffrey Dustin during the Reuters MOMENTUM event to discuss the development and use of AI in Austin, Texas, USA, July 11, 2023. to answer.Reuters/Nuri Valbona
AUSTIN, July 11 (Reuters) – Competing on price is the main way Amazon’s (AMZN.O) cloud unit seeks to differentiate itself from rivals seen as having artificial intelligence dominance, executives say said Tuesday.
The AI models behind viral chatbots like ChatGPT require massive computing power to train and operate, and Amazon Web Services (AWS) is good at lowering those costs, said the application group. Managing Vice President Dilip Kumar said.
A potential boost is that the company, like Google (GOOGL.O), has its own chips for AI.
“These models are expensive,” Kumar said at the Reuters MOMENTUM conference in Austin. “We do a lot of the undifferentiated heavy lifting to help our customers save money.”
The world’s largest cloud provider by revenue faces a difficult challenge. Rivals Microsoft (MSFT.O) and Google have marketed their own, higher-profile technologies, winning mindshare and some business in AI competitions that could be lucrative in the space.
Amazon’s competitors have similarly focused on cost cutting and have offered free previews of such technology, but the final price remained unclear.
As for quality, Kumar declined to comment on how Amazon’s own family of AI models, known as Titan, compares to more well-known models such as Microsoft-backed OpenAI’s GPT series and Google’s PaLM.
Amid widespread concerns about what happens to sensitive data fed to AI and the tendency of the technology to generate inaccurate information, he instead said, “Our unique approach to privacy, our He pointed out other Amazon characteristics, such as “unique coping methods.” information.
Additionally, as the biggest player in the cloud industry, “more companies of all sizes already have[their]data in AWS” is the reason for using the company’s AI, he said. .
Like Google, Amazon also markets technology from other high-profile startups to give customers choice.
AI promises aside, Amazon faces an uncertain economic climate and slowing near-term cloud revenue growth. Asked how Amazon’s 2024 budget plan was progressing, Kumar said the company in general was “in a tight spending cycle.”
Reported by Austin resident Jeffrey Dustin.Editing: Jamie Freed
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