Amazon Inks New AI Partnership: AMZN Set for October Surge?
Amid the growing demand for artificial intelligence products, Amazon (AMZN) has inked a new AI partnership. Indeed, the massive e-commerce company has signed a new five-year agreement with Databricks, a privately owned cloud-based intelligence company that develops AI solutions.
The move will see Amazon increase its AI development. Specifically, the move is key to increasing the capabilities of the company’s language models as it looks to become an even bigger player in the space. The increased interest in the technology has defined stock market trends, with AMZN now looking to capitalize.
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Amazon and Databricks Sign Five-Year Deal as AMZN Looks to Grow AI Presence
Over the last several years, interest in AI has reached unprecedented levels. Thanks to the meteoric rise of OpenAI’s ChatGPT and other competitors, demand is surging. Moreover, the stock market has seen companies within the sector gain massive interest from traders.
Look no further than Nvidia, the AI chipmaker that has become the world’s most valuable company. Yet, its rise to the top has only increased the number of companies eyeing a piece of the market share. Among them is Amazon, which has signed a new AI partnership aiming to renew interest in AMZN as a smart buy in the tech space.
Amazon has been thriving in both cloud computing through its Amazon Web Services (AWS) brand and artificial intelligence. Yet, its new deal with Databricsk could take it to a new level. Reports note that the deal could cut AI costs by 40%, which could be of interest to potential stock buyers.
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Databrics President Naveen Rao also assured that the collaboration will allow the creation of AI models to be faster and much more cost-effective. Through the use of Amazon’s Trainium processors, they are able to save significant amounts versus the use of Nvidia options.
Yet, Databricks did announce it will continue using Nvidia processors. That is part of an existing agreement between the company and AWS. The second generation of Trainium chips debuted in November of last year. Its presence, along with the new deal, could be huge for AMZN stock heading into the second half of October.