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Amazon Web Services sees AI advantage with low-priced cloud offerings as it takes on Microsoft, Google

  • AWS is good at lowering costs for the kind of immense computing power required to train AI models, the company’s vice-president overseeing applications says
  • Rivals Microsoft and Google have marketed higher profile technology, capturing mindshare in the potentially lucrative AI contest

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The logo of Amazon Web Services seen during the 4th annual America Digital Latin American Congress of Business and Technology in Santiago, Chile, on September 5, 2018. Photo: Reuters
A key way that Amazon’s cloud division aims to set itself apart from rivals perceived to have a leg up on artificial intelligence is by competing on price, an executive said on Tuesday.
The AI models behind a viral chatbot like ChatGPT require immense computing power to train and operate, the kinds of costs Amazon Web Services (AWS) is good at lowering, said Dilip Kumar, vice-president overseeing its applications group.

A potential boost is that the company, like Google, has proprietary chips for AI.

“These models are expensive,” Kumar said at the Reuters Momentum conference in Austin. “We’re taking on a lot of that undifferentiated heavy lifting, so as to be able to lower the cost for our customers.”

The world’s largest cloud provider by revenue faces a tall challenge. Rivals Microsoft and Google have marketed higher profile, proprietary technology, capturing mindshare and some business in the sector’s potentially lucrative AI contest.
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