AWS boss explains why investing billions in Anthropic and OpenAI is a good argument

AWS CEO Matt Garman said Amazon’s latest $50 billion investment in OpenAIafter his long association including $ 8 billion in investment Anthropic, is a type of conflict of interest that the cloud giant is used to solve.

Garman has been working at Amazon since he was a business school student in 2005, before AWS was founded in 2006, he told the audience about HumanX conference being held this week in San Francisco.

When asked about the inherent conflict of working with two AI modeling companies that are dangerous (and, arguably, sometimes small) competition, he said it is not a problem. Because AWS itself often competes with its peers, it has many direct experiences with such competition, he explained.

In the early years of AWS, it knew that it could not create any cloud that was dedicated to itself, so this part was partnered with others.

“We also knew we had to compete with our peers, because the technology is compatible,” Garman said. “So, for a long time, we’ve been very supportive of how we go to market with our partners,” he said. “But we can also have first-party content that competes with them, and that’s fine, and we’ve promised them we won’t give them a chance to compete.”

Today, the world is used for Amazon to compete with those who sell on its cloud. Although one of the major AWS players, Oracle, sells its database and other services on AWS. But it was an old-fashioned idea in 2006, when modern workers tried not to compete with the colleagues who helped them succeed.

However, Amazon is not the only way to speed up the loss of investor loyalty and inconsistent commitment to interest rates in the wild, money-grabbing world of AI. When Anthropic announced its latest $30 billion round in February, it included that at least a dozen investors who also contributed to OpenAI. This includes OpenAI’s main partner, Microsoft.

For AWS, investing heavily in OpenAI to get a prototype for its customers (and as a technology development partner) was almost a matter of life and death. All of these models were previously available on Microsoft’s cloud, AWS’s arch-rival.

Cloud giants are also working to position themselves front and center in providing AI-based services. These services allow their customers to use different models for different tasks as a way to improve performance and reduce costs. As Garman explained, one type can be good for planning, another for thinking, and cheaper for simple tasks, like code completion. “I think that’s where the world is going to go,” Garman said.

This is how Amazon, and Microsoft for that matter, will use their home brands – the old competitive situation, again.

All is well in love with AI these days.