""Is AWS in last place in AI? It's hard to argue otherwise," Bernstein's Mark Shmulik, one of the Street's top tech analysts, wrote in a note to investors this week. He cited a slew of data to support this concerning development, including AWS's slower revenue "growth rate," limited GPU capacity, CEO commentary, and the fact many AI startups are building elsewhere now."
""AI comes around and completely changes the rules of the game: suddenly there's a whole new crop of AI startups, LLMs, AI neoclouds, and a very expensive race for power, data centers, and GPUs," Shmulik wrote. "Maybe cloud is a perfect example of an Internet business where we can slot the 'Is AWS at risk from AI?'" Amazon's stock has been the "clear laggard" this year compared with Microsoft and Google, he added,"
AWS is trailing Microsoft Azure and Google Cloud in the AI cloud race, with slower revenue growth, limited GPU capacity, and a shift of AI startups to other providers. Microsoft benefits from an early AI partnership with OpenAI, while Google offers a full-stack approach with in-house Gemini models, TPUs, and fewer capacity constraints. Investors view Amazon as the clear stock laggard compared with Microsoft and Google. AWS's partnership with Anthropic and signs of progress could bolster future revenue growth, and falling behind in AI does not necessarily eliminate AWS's long-term competitiveness.
Read at Business Insider
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