Last updated on June 21st, 2025 at 02:20 am
Amazon, known for its e-commerce platform, is also recognized for Amazon Web Services (AWS). In the AI apace, although widely known for it’s investment in Anthropic, Currently, it is not trying to lead the space with any one particular large language model (LLM); instead, it offers customers a variety of models to choose from.
While most large language models are backed by specific big tech companies like chatgpt is backed by Open Ai, etc Amazon that’s already a giant in cloud services through AWS, has decided to provide multiple options rather than promote just one model.
This approach gives AWS customers the ability to build their own applications using a wide selection of models, in fact, more than 100 models are available to choose from.
While much of the world was using ChatGPT and impressed by its capabilities, DeepSeek, a model from China, made a big splash. AWS responded quickly by offering a fully managed similar version within just a couple of weeks. Deepseek is also available on Amazon bedrock for users if they so choose to access.
We’re talking about Amazon Bedrock, which, within two years of its launch has become one of the fastest-growing services AWS offers. In fact, it drove more than 18% of Amazon’s total revenue in the first quarter of the year.
Bedrock is one of Amazon’s core AI offering, and AWS hopes that by showcasing the variety of choices available, customers will have a reange of options to choose from and recognize its competitive edge.
What Is the Bedrock Advantage?
Before ChatGPT became a regular tool on our computers and mobile phones, Amazon was already working on generative AI. The Director of Product at AWS launched an internal initiative for a service that could generate code using LLMs based on simple English prompts. This shows that Amazon was leading in AI even before ChatGPT became mainstream.
In 2023, Amazon launched CodeWhisperer, a tool that lets developers use different AI models for code generation, making it easier to build advanced applications. Through this process, Amazon learned that customers value choice and this led to the decision to offer multiple models instead of just one.
Many people following AI may not realize how much Amazon is investing in this space, since most of the attention goes to OpenAI and a few other well-known models. But Amazon is quickly becoming a major player.
As a leader in retail e-commerce, Amazon understands the importance of investing in AI infrastructure to stay ahead. While companies like Google, Microsoft, Meta, Alphabet and Amazon are expected to spend $325 billion collectively on AI infrastructure, it shows how Amazon is keeping pace.
One major focus for Amazon is Anthropic, an LLM provider in which Amazon invested $8 billion in November 2024. This investment helps Anthropic train its models (like Claude) using primarily AWS chips.
This shows Amazon is deeply invested in AI training infrastructure, and while it has a strong partnership with one provider, it continues to offer a wide selection of models on Bedrock. Amazon understands that sometimes customers need options beyond what a single model like Anthropic’s Claude can provide.
The Role of AWS and Chips
AWS, Amazon’s cloud division, is like a giant computer that other companies can rent to run their websites, apps, and now, AI programs like ChatGPT.
Nvidia, a major chipmaker, produces very powerful (which can be expensive) chips for running AI. Amazon buys chips from Nvidia when needed, but it also designs its own AI chips, which are less expensive and still powerful.
Through Bedrock, Amazon allows customers to choose the infrastructure, whether that’s Amazon’s chips or chips from Nvidia, Intel, AMD, and others.
Amazon’s message is clear: “Our chips work great and cost less.” If Amazon succeeds in getting more customers to use its chips, it will increase its profits and gain market share from competitors.
Massive Investment in AI
Amazon is investing heavily to grow its AI business, with around $100 billion projected spending this year. For AWS customers, this is good news, as most of that money will go into building new AI tools and improving existing ones.
AI is a highly profitable business for big tech companies. Revenue from AI is growing fast, often 100% or more year over year.
Update: Amazon’s Bedrock AI service is switching up its game and will offer AI tools, even those made by competitors like Google or Microsoft—so that companies can mix, match, and choose the tools they want on a single platform. In the process, customers can stay on its cloud instead of looking elsewhere.
In Conclusion:
Just like how Amazon became the go-to place for the best deals in e-commerce, it now wants to be the go-to place for AI solutions, where customers can find choices, fair pricing, and flexibility all in one place.
Instead of forcing users to rely on just one AI model or one provider, Amazon is giving them options. It also aims to be more self-reliant by producing its own chips, reducing its dependence on external suppliers.