Google one pricing vs amazon8/7/2023 ![]() ![]() By then, AWS revenue and growth should have stabilized, and this will bring incremental upside to the AWS business. ![]() I think the acceleration will come in the second half of 2023, particularly in the fourth quarter as that is when most of its generative AI products and solutions like Bedrock will be rolled out generally. The next question is when will Amazon see the upside that Microsoft and Google are seeing? It is integrated with several development environments, including VS Code, IntelliJ IDEA, AWS Cloud9, AWS Lambda console, JupyterLab and Amazon SageMaker Studio.Īs a result of the large market share of AWS today, high switching cost, the likely commoditization of LLMs, and AWS's AI chip advantage, I do think that AWS is able to compete meaningfully with Azure and GCP despite being slightly behind the two players today. It provides 15 programming languages, including Python, Java, and JavaScript. ![]() Lastly, Amazon CodeWhisperer is a machine learning-based coding tool that improves developer productivity by generating code suggestions. According to Amazon, instances based on Trainium are up to 140% faster than GPU-based instances at up to 70% lower cost, while Inferentia2 drives 40% better inference price performance than other comparable Amazon EC2 instances. AWS Trainium chip offers lower cost for training models in the cloud, while AWS Inferentia chips are focused on lower costs for running inference in the cloud. Secondly, AWS has two chips that target AI training and AI inference, AWS Trainium and AWS Inferentia. The other is an embeddings LLM that translates text inputs into numerical representations and is useful for applications like personalization and search since it produces better word matching. One LLM works tasks like summarization, text generation, classification, open-ended Q&A, and information extraction. Amazon Titan makes two Amazon foundational models available to customers through Amazon Bedrock. I will elaborate more on Amazon Bedrock below. What are some of AWS' new generative AI offerings?įirstly, there is Amazon Bedrock and Titan. This is because as models get more commoditized, there is less incentive for customers to switch from AWS to Azure or GCP. Thirdly, while AWS has some work to do, my channel checks suggest that foundational models and LLMs could be commoditized, which will benefit AWS. When there is a chip shortage, this will limit competitors' ability to compete and allow AWS to catch up to them. Both Microsoft and Google currently source their AI chips from Nvidia ( NVDA), although Microsoft is rumored to be working on its own AI chip. Secondly, AWS has two chips targeting AI training and AI inference (Trainium and Inferentia). Hence, they are also more likely to use AWS's generative AI products given the high switching costs.īig three global cloud market share (Statistica) What this means is that its customers are already training on AWS and storing data with AWS. However, I will highlight a few points below:įirstly, as highlighted in the chart below, AWS has the largest market share position in the global cloud market. The common belief, and rightly so, is that Microsoft ( MSFT) and Google's ( GOOG) currently available models are often seen as superior to that of AWS, and Amazon is coming from behind on Large Language Models ("LLMs"). One question I get asked often is whether AWS is able to compete meaningfully against Azure and GCP on the generative AI opportunity. AWS able to compete on generative AI with Azure and GCP despite being late to the game This article will go deeper into the generative AI opportunity for AWS, as well as how the company is faring in the current macroeconomic environment given cloud spend optimizations and discretionary spending headwinds. ![]() I also shared with members of Outperforming the Market that I will be waiting for the right opportunity to enter Amazon and will send out a Buy trigger alert if that were to happen. Earlier, I shared a review of the Amazon shareholder letter and another earlier article on the attractive buying opportunity we have with Amazon. I have decided to look into Amazon ( NASDAQ: AMZN) again and position The Barbell Portfolio for any opportunity that might arise if the stock pulls back meaningfully. This article was first posted in Outperforming the Market on June 22, 2023. ![]()
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