Amazon is doubling down on its winning formula for e-commerce dominance, focusing on low prices, wide selection, and convenience to propel a new AI strategy from its Amazon Web Services division. The tech titan has been unveiling crucial pieces of its AI plan at its flagship AWS Re:Invent conference in Las Vegas.
At the center of this new strategy is a portfolio of in-house-built foundation models (FMs or LLMs), dubbed Nova, that can handle text, image, and video queries. This move aims to provide enterprises with choice in AI models from Amazon, Anthropic, Meta, and other tech giants.
Amazon has already introduced a service called Amazon Bedrock last year, which offers a relatively limited selection of AI models to business customers. The company has now doubled down on this strategy by announcing Bedrock Marketplace, which provides access to 100 AI models, including those from various companies with specialized designs.
The introduction of Nova and Bedrock Marketplace is significant as it aims to address the challenges businesses face when finding, evaluating, and using AI models. By providing a single interface, Amazon hopes to simplify the process for businesses looking to leverage AI in their applications.
Amazon’s e-commerce business has long relied on its competitive pricing and extensive product selection to attract customers. The company complements this with its own inventory of goods, including some under its brand names. This approach is expected to continue as Amazon offers an enterprise AI version of the Bedrock Marketplace.
The new AI strategy also echoes Amazon’s retail business model, where low prices are a hallmark. The company has been aggressively matching prices from other retailers and hosting two major discount events that attract heavy spending and new Prime customers.
Industry experts praise the competitive pricing and performance of Amazon’s Nova models, which are seen as comparable to Google Gemini. This move positions Amazon among the top tier of model providers, raising questions about the need for a new acronym to recognize the company’s growing influence in the AI landscape.
As Amazon continues to push its AI strategy, businesses can look forward to increased access to a wide range of AI models and services that cater to their needs. With low prices and selection at the forefront, Amazon aims to future-proof its position as a leading technology corporation for decades to come.
Source: https://fortune.com/2024/12/04/amazon-aws-reinvent-nova-bedrock-marketplace-ai-cloud-strategy-ecommrce-playbook