In the technology world, competition is key. It drives companies to work hard to develop unique value and products that offer solutions where competitors fail. With Nvidia (NVDA) rapidly dominating AI, one may wonder how Amazon (AMZN) positions itself in this market. In an Opening Bid with Yahoo Finance Executive Editor Brian Sozzi, Neuberger Berman Senior Research Analyst Daniel Flax said the key for Amazon is to “increase the level of differentiation” both in-house and through partnerships with Nvidia, Intel (INTC), AMD (AMD) and others.
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Video Transcript
How serious do you think it is?
Well, Amazon makes its own chips.
And does it increase the value of such businesses?
It's investing in silicon and really bringing a level of differentiation to chips in the environment.
For example, Graviton, an inference training company in the field of artificial intelligence, has successfully developed chips that offer cost benefits and environmentally friendly low-power performance.
I think it’s really important to see other people doing that.
Google has done that very well.
Ah, so Apple does that.
And I think the ability to build from silicon provides a level of differentiation, a level of stickiness, so to speak.
That's powerful.
But all of these companies plan to make internal investments.
But of course, Amazon will need to do both, as it will be relying on partners like NVIDIA, Intel, MD, and others.
But I think silicon differentiation is very valuable.
