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Amazon cloud boss Matt Garman inherits business under pressure to keep pace in AI

May 25, 2024 - cnbc.com
Amazon Web Services (AWS) is struggling to establish itself as a leader in generative artificial intelligence (AI), despite significant investment. The company is perceived as lagging behind rivals Microsoft and Google, as well as OpenAI, in the development of AI tools. AWS's growth has slowed, and it has experienced layoffs, while Microsoft and Google have increased their market shares. The recent departure of AWS CEO Adam Selipsky, to be replaced by Matt Garman, is seen as a significant shake-up.

Amazon's generative AI efforts have been questioned, with the company yet to see significant success despite backing OpenAI competitor Anthropic and developing its own large language models. The company's Q chatbot has been described as underwhelming, and there are reports of restrictions on internal use of AI services. Despite these challenges, Amazon's shares have risen, with Wall Street continuing to support the company.

Key takeaways:

  • Amazon Web Services (AWS) is struggling to emerge as a leader in generative AI, despite significant investment and the development of large language models.
  • AWS's growth has decelerated, and it is perceived to be falling behind cloud rivals Microsoft and Google in the development of AI tools.
  • Adam Selipsky, the former head of AWS, has exited the company and will be succeeded by Matt Garman, a veteran AWS executive.
  • Amazon plans to use generative AI to make Alexa more conversational and intends to charge a subscription fee for the more powerful version.
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