Amazon CEO Andy Jassy recently addressed various platforms that he and his company are very concerned about the competition in AI cloud. But Wall Street experts believe that it might be a strategic story, in fact, Amazon is still behind Microsoft and Google in the AI cloud competition.
Amazon's Competition in AI Cloud Market is Narrowing Down
Currently, the three cloud infrastructure and AI behemoths are Microsoft (Azure) and Google Cloud. As more demand is being created for the use of the cloud to train and deploy AI models, so has competition to dominate the marketplace.
Andy Jassy further stated a couple of days ago that AI competition is a "substantial challenge" for them and that they want to infuse more innovation into their services. Despite the touch of self-criticism in the words, according to analysts, it can be an attempt to persuade Wall Street that is ahead of the competition.
Andy Jassy further stated a couple of days ago that AI competition is a "substantial challenge" for them and that they want to infuse more innovation into their services. Despite the touch of self-criticism in the words, according to analysts, it can be an attempt to persuade Wall Street that is ahead of the competition.
Microsoft and Google Already Have The Advantage in Their Hands
Microsoft has already set up Azure as an AI platform by acquiring a deal with OpenAI. Further, Google Cloud's Vertex AI product is also picking up pace. Whereas this company is fighting for survival against the competition with its Trainium and Inferentia chips, Bedrock API, customers are not cooperating.
Wall Street Attitude: Trust Actions More Than Words
Most Wall Street analysts think that Andy Jassy's message is action focused rather than worried. Rather, they say that this company must come out with a more action focused roadmap, where innovation, performance, and customer adoption are measured.
Amazon latest earnings report also mirrored that growth has reduced a bit, which further strengthened such concerns.
Amazon latest earnings report also mirrored that growth has reduced a bit, which further strengthened such concerns.
The AI Cloud War Is Not Over
Any rivalry is underestimated by a firm , but Wall Street now holds its breath in anticipation of the outcome. If the promise of Andy Jassy is held out, It can once again be in the driver's seat. For now, though, Google and Microsoft are fractionally ahead in the AI cloud dash and shareholders are aware of it.
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