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Innovation Amazon web services

Amazon is attempting to position itself as a leading cloud provider for AI services. (Photo by Nathan Stirk/Getty Images)

By Hannah Bryan Leaders Staff

Hannah Bryan

News Writer

Hannah Bryan is a news writer for Leaders Media. Most recently she was a reporter for the Sanilac County News...

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Feb 22, 2023

A.I. Deals Heat Up

As the demand for generative artificial intelligence (AI) grows, companies like Amazon are partnering with startups to implement AI technology while OpenAI makes new deals.

Key Details

  • AI startup Hugging Face is working on a ChatGPT rival, and Amazon’s cloud unit has just announced a growing partnership with the startup. 
  • Amazon’s new partnership comes as Microsoft strikes a $10-billion deal with OpenAI and Alphabet reportedly invests $400 million into OpenAI rival Anthropic, Bloomberg reports. 
  • Amazon already has an agreement with another of OpenAI’s competitors—Stability AI. The company created an image-generation tool called Stable Diffusion as an answer to OpenAI’s Dall-E. 
  • In addition to Hugging Face and Stable Diffusion, Amazon has a deal with Israeli developer AI21 Labs, which has a ChatGPT competitor called Jurassic. 
  • Amazon may also be forced to confront a growing trend of AI-generated books popping up for sale on its platform.
  • A growing number of books available on Amazon are written partly or entirely by ChatGPT. The exact number is unknown as authors rarely disclose whether or not they used AI. 

Why it’s news

Demand for generative AI technology is increasing, and tech companies are racing not to be left behind. Amazon’s multiple partnerships with different AI startups give the company a range of options, as each deal focuses on different aspects of AI. 

As generative AI becomes more popular, companies will need additional cloud-computing services. Programs like ChatGPT require massive amounts of computing power which the cloud can provide. Amazon, Microsoft, and Google already have cloud services available. As AI technology grows, cloud providers will be competing for customers. 

Already, Amazon has around 100,000 customers using its cloud services to run AI technology. Those customers will now be able to access AI tools from Hugging Face. 

Microsoft has already heavily invested in ChatGPT and will start testing new options for enhanced conversation with the AI chatbot. Users will be able to opt for more creative or more precise answers to questions.

Microsoft is also looking to add a new feature—Bing Chate tones. This new addition to the AI-powered search engine will allow users to choose the way Bing responds to questions—either precise, balanced, or creative.

The more creative option will give users a more talkative AI response rather than a concise answer to a given question. 

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