AWS invests $100 million in A.I. center to rival Microsoft and Google

Amazon Web Services (AWS) has allocated $100 million to help companies use generative artificial intelligence, which has rapidly grown in popularity since OpenAI released its ChatGPT chatbot. The move shows that AWS recognizes the significance of the current moment in generative AI and the importance of being in the conversation alongside rivals Microsoft and Google. The investment will augment AWS’ data scientists, engineers, and solutions architects. The company has already begun working with two customers, Highspot and Twilio. AWS CEO Adam Selipsky said the company’s success has been built by listening to customers, and it will continue to do so. AWS leads the cloud infrastructure market, but its rivals have had splashier entrances into generative AI. Microsoft has been spending billions on a multilayered alliance with OpenAI, and Google is rapidly deploying AI tools it built in-house. Selipsky isn't concerned, however, as AI is the next wave of innovation in the cloud and will push even more customers to want to be in the cloud. AWS has traditionally provided credibility in offering generative AI that eludes others in the space. Selipsky said the company is experiencing a shortage of compute capacity for doing generative AI and machine learning in general right now, but the situation will improve in the next few months. He is also reckoning with a slowdown in customer spending on cloud as businesses prepare for ongoing economic uncertainty.