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Amazon, the world’s largest cloud company that provides IT infrastructure to companies around the world, has joined the competition for generative artificial intelligence (AI) led by Microsoft (MS) and Open AI Alliance and Google.On the 13th (local time), Amazon unveiled ‘Titan’, a large language model (LLM), and ‘Bedrock’, a cloud service based on it. Just as OpenAI’s AI Chatbot “Chat GPT” understands natural language (human language) and creates sentences, Amazon’s Titan can also understand and generate natural language. It also extracts and summarizes information from text or supports customized searches. Titan is only available to corporate customers who have applied for Amazon Web Services’ Bedrock Cloud service. Titan and Bedrock are known to have been released in a preview manner only to some customers.Customers who use Bedrock Cloud can choose generative AI from several companies in addition to Titan.

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Bedrock included Anthropic’s language model “Claude,” founded by Daniela Amadei and Dario Amadei siblings, an Israeli company AI21 Labs’ language model “Jurassic-2,” and Stable Diffusion, an image-generating AI of StabilityAI. Its strategy is to strengthen its position as an AI platform company by providing ‘generative AI comprehensive gift sets’ to customers.

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Amazon CEO Andy Jessie appeared on CNBC in the U.S. and said, “Most companies want to use a huge language model, but they are reluctant to do so because training alone costs billions of dollars and takes years.” Amazon explained that confidentiality can be maintained because the customer’s data is not used to train generative AI, but is all encrypted and stays only within the virtual network of the customer’s account.Until now, Amazon has been evaluated to be inferior to MS and Open AI Alliance and Google in the generative AI competition. It did not publish excellent papers on generative AI like Google or Open AI, nor did it consistently invest in generative AI companies like Microsoft.However, as Amazon, which occupies 40% of the global cloud market, decided to provide various generative AI services to customers on the same day, the industry analyzes that the AI ecosystem could be reorganized around Amazon. The Wall Street Journal said, “(Unlike MS investing only in open AI), Amazon is promoting itself as ‘Switzerland of the Cloud (meaning a neutral country)’ in a way that is not tied to one AI startup.”Microsoft is also introducing Chat GPT technology to the cloud, and Google is also upgrading to apply its own generative AI to Google Cloud. Microsoft and Google’s share of the cloud market is 20% and 10%, respectively, which are far behind Amazon.

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The three companies said they plan to set up a new independent company “that is free from profit-making incentives and constraints,” according to a statement on Tuesday. The initial focus will be on technology solutions to provide health care “at a reasonable cost.”

This combination of photos from left shows Warren Buffett on Sept. 19, 2017, in New York, Jeff Bezos, CEO of Amazon.com, on Sept. 24, 2013, in Seattle and JP Morgan Chase Chairman and CEO Jamie Dimon on July 12, 2013, in New York. Buffett’s Berkshire Hathaway, Amazon and the New York bank JPMorgan Chase are teaming up to create a health care company announced Tuesday, Jan. 30, 2018, that is “free from profit-making incentives and constraints.” (AP-Yonhap)

Shares of an array of US health-care stocks dropped on the news. Express Scripts Holding Co. and CVS Health Corp., which manage pharmacy benefits, declined in early trading, as did health insurers.

“By bringing together three of the world’s leading organizations into this new and innovative construct, the group hopes to draw on its combined capabilities and resources to take a fresh approach to these critical matters,” according to the statement.

The effort is in its early planning stages, the companies said. The effort is being spearheaded by Todd Combs, an investment officer of Berkshire Hathaway; Marvelle Sullivan Berchtold, a managing director of JPMorgan Chase; and Beth Galetti, a senior vice president at Amazon.

The management team, location of the headquarters and other operational details are to be announced at a later date.

(Bloomberg)