The world’s largest cloud computing provider is considering using new AI chips from Advanced Micro Devices Inc (AMD.O). However, an AWS executive told Reuters that it has yet to make a final decision. The remarks came during an AMD event where the chip company outlined its strategy for the AI market, which is dominated by rival Nvidia Corp (NVDA.O). AMD shares rose 1.7% in premarket trading, while Nvidia stock closed 3.6% lower.
Amazon’s cloud unit has already rolled out tools that help developers create and run AI software, from proprietary chips for raining algorithms on massive data sets to services that speed up the time it takes to build chatbots or other AI products. On Tuesday, it announced a partnership with Hugging Face, a New York-based startup that has become an online community hub where AI developers share open-source code and models. AWS will make it easy to take the code from Hugging Face, which runs its website, and run it on its servers, where it can be trained with real-world data.
It’s a sign of how far Amazon has come in its efforts to make it easier for retailers to build and operate AI systems that automate routine tasks, like analyzing sales trends or suggesting products to customers. But there are still many hurdles. AI is complicated and requires deep computer resources that are expensive to acquire and maintain, especially for companies that need data centers. A big worry is that hackers will find ways to hack into a company’s servers and steal sensitive information.
Another concern is that even if sophisticated security measures protect a system, it could be overwhelmed if too much data gets piled up on one server. For example, if the systems that analyze customer purchases are all housed in the exact location, it makes it more difficult to respond quickly to a cyber attack.
Amazon’s moves come as it tries to grab a more significant share of the online shopping business and offset slower growth in its core retail operation. The company is also investing heavily in technology, such as self-driving vehicles and warehouses that can efficiently churn out orders. Investors are betting that its progress in AI will be the key to its future success. It is among the fastest-growing tech stocks this year.
