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Amazon Will Offer OpenAI Models to Customers for First Time

Amazon Will Offer OpenAI Models to Customers for First Time

Yahooa day ago
(Bloomberg) -- Amazon.com Inc. plans to make OpenAI's latest artificial intelligence models available to customers, the first time the cloud computing giant has offered products from the leading AI startup.
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Amazon will offer the tools on its Bedrock and SageMaker platforms and said that their advanced reasoning capabilities make them suited for AI agents.
The OpenAI models will help the company's cloud division, Amazon Web Services, meet demand from customers who want access to a variety of tools to figure out which ones work best for their needs, Atul Deo, general manager of Amazon Bedrock, said in an interview.
'We want to give customers choice and flexibility,' he said.
OpenAI announced its new models on Tuesday and said they can carry out complex tasks like writing code and looking up information online on a user's behalf. The models are 'open-weight' systems — a design that makes it easier for developers to customize them.
Previously Microsoft Corp. was the only cloud provider that could resell OpenAI software, an advantage that has helped its Azure division grow faster than AWS.
Amid concerns that Amazon is lagging behind its rivals in AI, Chief Executive Officer Andy Jassy has positioned AWS as a kind of supermarket that sells a range of AI tools to businesses. The company's Bedrock software platform was designed to make it easier to access other companies' large language models, as well as Amazon's own.
The company also has partnered with Anthropic, investing $8 billion in the AI startup and using the relationship to bolster its credentials in AI services. AWS offers Anthropic's Claude models to clients on its AI marketplace. Anthropic plans to release a new version of its most powerful AI model on Tuesday that the company claims is more capable at coding, research and data analysis.
Amazon shares rose about 1% at 2:59 p.m. in New York. The stock has declined about 2.6% so far this year compared with a 7.3 increase in the S&P 500.
Amazon last week projected weaker-than-expected operating income for the current quarter and trailed the sales growth of its main cloud rivals, leaving investors looking for signs that the company's huge investments in AI are paying off.
During the second quarter, AWS revenue grew a little more than 17% to $30.9 billion, barely surpassing analysts' average estimate of $30.8 billion.
Amazon last year named Matt Garman the cloud division's CEO. A longtime AWS engineering leader who was previously sales chief, Garman succeeded Adam Selipsky.
--With assistance from Matt Day.
(Updated with executive quote in fourth paragraph)
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