Amazon accelerates within the synthetic intelligence race: it plans to allocate $50 billion to OpenAI | Economy | EUROtoday

Amazon, the corporate that was born 30 years in the past as an internet bookstore, is betting every part on synthetic intelligence. The firm based by Jeff Bezos has simply introduced that it’s going to lay off 16,000 employees and shut a whole lot of shops in its Amazon Fresh supermarkets and Amazon Go comfort shops. It desires to focus its efforts on accelerating the race for AI, which is consuming huge quantities of assets. For them, the know-how large plans to spend money on OpenAI, the pioneering firm within the improvement of this know-how and proprietor of ChatGPT.

The e-commerce large is in negotiations with the start-up most respected on this planet to take a position as much as 50,000 million {dollars}, as reported this Thursday The Wall Street Journal.

Negotiations are happening on the highest degree. The CEO of Amazon, Andy Jassy, ​​and the pinnacle of OpenAI, Sam Altman, are in talks to unblock the operation.

ChatGpt’s mother or father firm wants greater than $100 billion to keep up investments. It wants the assets to proceed constructing dozens of information facilities, with a whole lot of computer systems that use very costly ultra-advanced microprocessors to develop the fashions. And energy crops to energy all these servers. In no different industrial revolution in historical past had been so many investments concentrated in such a brief time frame.

Likewise, as famous by Bloomberg, Altman has additionally met with main buyers within the Middle East for a financing spherical that might worth the ChatGPT maker at as much as $830 billion. At the second, neither firm has commented.

In the sector, there are issues concerning the cross-relationships between all of the protagonists of the AI ​​race, with cross-investments and alliances, which raises the chance of a technological bubble, which is starting to have many parallels with that of the early 2000s.

In the context of its dedication to carve out an essential area of interest on this planet of synthetic intelligence, Jeff Bezos’ firm introduced final December the launch, by its Amazon Web Services (AWS) division, of a brand new AI chip that may problem Nvidia, the present chief on this market. Shortly earlier than, the know-how large additionally introduced one other funding of as much as $50 billion in increasing its capability to offer synthetic intelligence infrastructure and high-performance computing companies to US authorities entities.

The information comes simply in the future after Amazon introduced that it’s going to minimize 16,000 jobs worldwide, in a second main spherical of layoffs within the final three months. The adjustment is a part of a robust restructuring launched by the American know-how large, following the over-hiring recorded in the course of the years after the pandemic and the enlargement of the adoption of synthetic intelligence instruments. The layoffs would have an effect on employees in Amazon Web Services, retail, Prime Video and human assets. As an entire, the corporate has practically 1.5 million staff worldwide.

Amazon, which presents its fourth quarter outcomes subsequent week, additionally introduced the closure of its bodily Amazon Fresh and Amazon Go shops within the US to focus its efforts on gross sales. on-line and residential deliveries. This reorganization will even imply the dismissal of a whole lot of employees from these institutions, though the group indicated that it’s going to work on relocating these personnel to different inner positions.

Looking forward to the aforementioned 2025 accounts, Amazon is near exceeding $700 billion in income, which might be a brand new file. The group based by Jeff Bezos recorded a enterprise quantity of 503,538 million between January and September, with a progress of 13% within the third quarter. For the fourth quarter, Amazon forecast gross sales between 206,000 and 213,000 million, with progress between 10% and 13%.