The company urgently wants to remain competitive in the rapidly developing market.
As you know, every November Amazon holds re:Invent, a major trade show in Las Vegas that attracts thousands of software developers and technology leaders. The event traditionally showcases the cloud computing revolution led by Amazon, with AWS executives encouraging attendees to switch from traditional servers to cloud services offered by the company. The success of Amazon Web Services is remarkable, with $90 billion in revenue by 2023, proving its dominance in the field.
However, the emergence of generative artificial intelligence was a turning point. In November 2022, OpenAI released ChatGPT, which demonstrated the potential of AI to generate text, images, and video. Microsoft, in collaboration with OpenAI, has integrated artificial intelligence into its products, including cloud computing services. Similarly, Google has started incorporating generative AI into its offerings. Amazon’s initial attempts in this area seemed less advanced in comparison.
At the event, Bezos’ company’s presentations and product presentations also focused on AI. Adam Selipsky, head of AWS, shared the stage with representatives from Nvidia and Anthropic, highlighting Amazon’s significant investment in artificial intelligence, including basic models and a workplace chatbot. This shift indicates that Amazon urgently wants to remain competitive in the rapidly developing cloud and AI market. While AWS is still the default choice for many companies modernizing their infrastructure, the rise of generative AI is challenging. To stay competitive, you need to excel in this area, as JB McGinnis of Deloitte noted.
At the event, Amazon Web Services presented a more modest approach, asking startup founders for feedback to improve their services. This change in behavior reflects its recognition of the need to actively compete in a market where companies such as Google are making significant strides.
Amazon shares have gained more than 79% in the past year, while Microsoft has gained 56%.