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Senior VP Head Scientist of Amazon Alexa, Rohit Prasad in Lisbon.

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Amazon‘s Alexa head said his company is right in the middle of the boom in generative artificial intelligence, the technology that’s spreading rapidly across Silicon Valley and has spurred an arms race between Microsoft and Google.

The tech world has been enamored with a new generation of chatbots since OpenAI’s ChatGPT went viral late last year. That’s pressured companies like Amazon to showcase their own capabilities in generative AI. Amazon’s biggest entry into the market thus far has been through an AI service for cloud customers.

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However, Rohit Prasad, Amazon’s senior vice president and head scientist for Alexa, said it’s wrong to think the e-retailer has missed out in generative AI, which allows people to convert text-based queries into creative and thorough answers.

“Alexa has been and is at the forefront of AI for a long time,” Prasad told CNBC in an interview. “We’ve been part of the cultural zeitgeist and it hasn’t slowed down.”

Prasad added that contrary to ChatGPT, which remains accessible through a web browser, Alexa is an “instantly available, personal AI” that people can communicate with by voice.

Amazon established an early lead in voice software after it debuted its Alexa digital assistant in 2014. More than 500 million Alexa-powered devices have been sold worldwide, the company said Wednesday. The last time Amazon gave an update on that number was in 2019, when it was at 100 million.

The Alexa assistant, now plugged into everything from smart speakers to thermostats, has long depended on machine learning technology to answer their queries by fetching relevant data.

But the rise of AI-powered chatbots, which can perform sophisticated functions like writing fiction and coding software, has highlighted the limitations of digital assistants such as Alexa. Amazon founder Jeff Bezos’ sci-fi vision for Alexa to resemble an all-knowing computer from “Star Trek” hasn’t exactly panned out.

Prasad said Amazon is working to make Alexa more conversational and intelligent. One way it hopes to do so is through a new version of its own large language model, called Alexa Teacher Model. Large language models power generative AI, and Alexa is already powered by Amazon’s LLM.

The goal is for Alexa to be able to answer complex requests, and understand more about users.

“This is where all the ambient context of who you are, what are you asking, where you are, comes in to make the best decision for you in that moment and on your behalf,” Prasad said.

In his latest letter to investors, Amazon CEO Andy Jassy said generative AI and LLMs are areas where the company is “investing heavily,” noting that the technologies stand to “transform and improve virtually every customer experience.”

The company has posted job listings suggesting it plans to implement a ChatGPT-style product in search on its online store, Bloomberg reported. Amazon may also add more generative AI-like features to Alexa focused on entertainment and storytelling, according to Insider.

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Amazon Web Services is building equipment to cool Nvidia GPUs as AI boom accelerates

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Amazon Web Services is building equipment to cool Nvidia GPUs as AI boom accelerates

The letters AI, which stands for “artificial intelligence,” stand at the Amazon Web Services booth at the Hannover Messe industrial trade fair in Hannover, Germany, on March 31, 2025.

Julian Stratenschulte | Picture Alliance | Getty Images

Amazon said Wednesday that its cloud division has developed hardware to cool down next-generation Nvidia graphics processing units that are used for artificial intelligence workloads.

Nvidia’s GPUs, which have powered the generative AI boom, require massive amounts of energy. That means companies using the processors need additional equipment to cool them down.

Amazon considered erecting data centers that could accommodate widespread liquid cooling to make the most of these power-hungry Nvidia GPUs. But that process would have taken too long, and commercially available equipment wouldn’t have worked, Dave Brown, vice president of compute and machine learning services at Amazon Web Services, said in a video posted to YouTube.

“They would take up too much data center floor space or increase water usage substantially,” Brown said. “And while some of these solutions could work for lower volumes at other providers, they simply wouldn’t be enough liquid-cooling capacity to support our scale.”

Rather, Amazon engineers conceived of the In-Row Heat Exchanger, or IRHX, that can be plugged into existing and new data centers. More traditional air cooling was sufficient for previous generations of Nvidia chips.

Customers can now access the AWS service as computing instances that go by the name P6e, Brown wrote in a blog post. The new systems accompany Nvidia’s design for dense computing power. Nvidia’s GB200 NVL72 packs a single rack with 72 Nvidia Blackwell GPUs that are wired together to train and run large AI models.

Computing clusters based on Nvidia’s GB200 NVL72 have previously been available through Microsoft or CoreWeave. AWS is the world’s largest supplier of cloud infrastructure.

Amazon has rolled out its own infrastructure hardware in the past. The company has custom chips for general-purpose computing and for AI, and designed its own storage servers and networking routers. In running homegrown hardware, Amazon depends less on third-party suppliers, which can benefit the company’s bottom line. In the first quarter, AWS delivered the widest operating margin since at least 2014, and the unit is responsible for most of Amazon’s net income.

Microsoft, the second largest cloud provider, has followed Amazon’s lead and made strides in chip development. In 2023, the company designed its own systems called Sidekicks to cool the Maia AI chips it developed.

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Bitcoin rises to fresh record above $112,000, helped by Nvidia-led tech rally

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Bitcoin rises to fresh record above 2,000, helped by Nvidia-led tech rally

The logo of the cryptocurrency Bitcoin can be seen on a coin in front of a Bitcoin chart.

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Bitcoin hit a fresh record on Wednesday afternoon as an Nvidia-led rally in equities helped push the price of the cryptocurrency higher into the stock market close.

The price of bitcoin was last up 1.9%, trading at $110,947.49, according to Coin Metrics. Just before 4:00 p.m. ET, it hit a high of $112,052.24, surpassing its May 22 record of $111,999.

The flagship cryptocurrency has been trading in a tight range for several weeks despite billions of dollars flowing into bitcoin exchange traded funds. Bitcoin purchases by public companies outpaced ETF inflows in the second quarter. Still, bitcoin is up just 2% in the past month.

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Bitcoin climbs above $112,000

On Wednesday, tech stocks rallied as Nvidia became the first company to briefly touch $4 trillion in market capitalization. In the same session, investors appeared to shrug off the latest tariff developments from President Donald Trump. The tech-heavy Nasdaq Composite notched a record close.

While institutions broadly have embraced bitcoin’s “digital gold” narrative, it is still a risk asset that rises and falls alongside stocks depending on what’s driving investor sentiment. When the market is in risk-on mode and investors buy growth-oriented assets like tech stocks, bitcoin and crypto tend to rally with them.

Investors have been expecting bitcoin to reach new records in the second half of the year as corporate treasuries accelerate their bitcoin buying sprees and Congress gets closer to passing crypto legislation.

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Perplexity launches AI-powered web browser for select group of subscribers

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Perplexity launches AI-powered web browser for select group of subscribers

Dado Ruvic | Reuters

Perplexity AI on Wednesday launched a new artificial intelligence-powered web browser called Comet in the startup’s latest effort to compete in the consumer internet market against companies like Google and Microsoft.

Comet will allow users to connect with enterprise applications like Slack and ask complex questions via voice and text, according to a brief demo video Perplexity released on Wednesday.

The browser is available to Perplexity Max subscribers, and the company said invite-only access will roll out to a waitlist over the summer. Perplexity Max costs users $200 per month.

“We built Comet to let the internet do what it has been begging to do: to amplify our intelligence,” Perplexity wrote in a blog post on Wednesday.

Perplexity is best known for its AI-powered search engine that gives users simple answers to questions and links out to the original source material on the web. After the company was accused of plagiarizing content from media outlets, it launched a revenue-sharing model with publishers last year.

In May, Perplexity was in late-stage talks to raise $500 million at a $14 billion valuation, a source familiar confirmed to CNBC. The startup was also approached by Meta earlier this year about a potential acquisition, but the companies did not finalize a deal.

“We will continue to launch new features and functionality for Comet, improve experiences based on your feedback, and focus relentlessly–as we always have–on building accurate and trustworthy AI that fuels human curiosity,” Perplexity said Wednesday.

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