Amazon is significantly increasing its investment in artificial intelligence, aiming to develop its own AI products, including a ‘reasoning’ AI model and AI agents. The company’s efforts to create an internally developed AI model with sophisticated reasoning capabilities are nearing completion, according to Business Insider. While the reasoning model is nearly complete, the development of proprietary AI agents is still in its initial phases.
Reuters reports that Amazon has formed a dedicated agentic AI group led by Swami Sivasubramanian, an experienced executive who has a strong history of managing the organization’s AI and data teams.
Competitive Landscape
Amazon’s emerging AI model is designed to compete directly with models like OpenAI’s and DeepSeek. These advanced models are known for their more deliberative response generation, a strategy intended to improve the accuracy and reliability of answers. The planned launch is scheduled for June, with integration into Amazon’s existing Nova model suite. The company intends to differentiate itself through competitive pricing, although this presents a challenge, especially given DeepSeek’s reputation for affordable pricing.
Increased Investment
The artificial intelligence landscape is rapidly evolving, requiring considerable financial investment to remain competitive. Amazon’s key competitors – major technology corporations – are making substantial investments. For instance, Microsoft is allocating $80 billion this year for AI-related data center expansions.
Recognizing the need to stay technologically relevant, Amazon is also boosting its AI investment allocation. This year’s budget is set at $100 billion, a substantial increase from last year’s $83 billion expenditure.
Amazon’s AI Ecosystem
Currently, Amazon’s AI ecosystem encompasses Nova models, dedicated AI hardware through Trainium chips and Bedrock, a marketplace for AI products. However, the areas of autonomous AI agents and reasoning models represent arenas where other tech companies have been actively innovating, with Amazon taking a characteristically measured approach to market entry. This strategy mirrors previous technology adoption patterns, like the company’s delayed entry into chatbot development and an AI-model for generating images. Amazon is thus now beginning to catch up with the competition.
