Connect with us

Published

on

Amazon CEO Andy Jassy on jumping into the generative A.I. race with new cloud service

Amazon is introducing a cloud service called Bedrock that developers can use to enhance their software with artificial intelligence systems that can generate text, similar to the engine behind the popular ChatGPT chatbot powered by Microsoft-backed startup OpenAI.

The announcement indicates that the largest provider of cloud infrastructure won’t be leaving a trendy growth area to challengers such as Google and Microsoft, both of which have started offering developers large language models they can tap into. Generally speaking, large language models are AI programs trained with extensive amounts of data that can compose human-like text in response to prompts that people type in.

Through its Bedrock generative AI service, Amazon Web Services will offer access to its own first-party language models called Titan, as well as language models from startups AI21 and Google-backed Anthropic, and a model for turning text into images from startup Stability AI. One Titan model can generate text for blog posts, emails or other documents. The other can help with search and personalization.

“Most companies want to use these large language models but the really good ones take billions of dollars to train and many years and most companies don’t want to go through that,” Amazon CEO Andy Jassy said on CNBC’s “Squawk Box” Thursday. “So what they want to do is they want to work off of a foundational model that’s big and great already and then have the ability to customize it for their own purposes. And that’s what Bedrock is.”

The Bedrock initiative comes one month after OpenAI announced GPT-4, a large language model that powers ChatGPT, a chatbot that went viral after its launch in November. The most formidable competition for Amazon’s AWS business comes from Microsoft, which has invested billions in OpenAI and supplies the startup with computing power through its Azure cloud.

Andy Jassy, chief executive officer of Amazon.Com Inc., during the GeekWire Summit in Seattle, Washington, U.S., on Tuesday, Oct. 5, 2021.

David Ryder | Bloomberg | Getty Images

People using ChatGPT and Microsoft’s Bing chatbot based on OpenAI language models have at times encountered inaccurate information, owing to a behavior called hallucination, where the output can appear convincing but actually has nothing to do with the training data. Amazon is “really concerned about” accuracy and ensuring its Titan models produce high-quality responses, Bratin Saha, an AWS vice president, told CNBC in an interview.

Clients will be able to customize Titan models with their own data. But that data will never be used to train the Titan models, ensuring that other customers, including competitors, don’t end up benefiting from that data, said another vice president.

Sivasubramanian and Saha declined to talk about the size of the Titan models or identify the data Amazon used to train them, and Saha would not describe the process Amazon followed to remove problematic parts of the model training data.

Amazon isn’t disclosing the cost of the Bedrock service, because for now it’s starting a limited preview. Customers can add themselves to a waiting list, a spokesperson said. Microsoft and OpenAI have announced prices for using GPT-4, which start at a few cents per 1,000 “tokens,” with one token being equal to about four characters of English text. Google has not released pricing for its PaLM language model.

Sivasubramanian, who has been at Amazon since the mid-2000s, said that Amazon has worked on AI for more than two decades and that AWS has racked up over 100,000 AI customers. Amazon has been using a fine-tuned version of Titan to deliver search results through its homepage, he added.

But Amazon is just one of the big companies that have rushed to bring out generative AI capabilities after ChatGPT appeared and became a hit. Expedia, HubSpot, Paylocity and Spotify are among the companies that have committed to integrating OpenAI technology.

Morgan Stanley analysts said in a Wednesday note that, based on a February survey of chief information officers, they expect AI to become a larger part of cloud spending, with Google and Microsoft being the largest beneficiaries, not Amazon.

“We always actually launch when things are ready, and all these technologies are super early,” Sivasubramanian said. He said Amazon wants to ensure Bedrock will be easy to use and cost-effective, thanks to the use of custom AI processors.

C3.ai, Pegasystems, Accenture and Deloitte are among the companies looking forward to using Bedrock, he wrote in a blog post.

WATCH: Cramer on Microsoft: ChatGPT is good for the company

Cramer on Microsoft: ChatGPT is good for the company

Correction: C3.ai, Pegasystems, Accenture and Deloitte are among the companies looking forward to using Bedrock, Sivasubramanian wrote in a blog post. An earlier version misstated the names of the companies.

Continue Reading

Technology

Microsoft enters portable gaming with new ROG Xbox Ally devices

Published

on

By

Microsoft enters portable gaming with new ROG Xbox Ally devices

Microsoft ROG Xbox Ally and Ally X Handheld devices

Source: Xbox

Microsoft Xbox players will soon be able to take their favorite games anywhere with the launch of the new ROG Xbox Ally handhelds.

This is a first for Xbox, which has never released a handheld before.

The devices, developed in collaboration with ASUS, offer a full-screen Xbox experience meant for portable play.

Players will be able to access Xbox games, stream content, and play on the go with built-in support for cloud gaming.

“Players can look forward to an approachable gaming experience that travels with you wherever you go, featuring several new and first-of-their kind features on both devices,” Microsoft said in a press release.

The announcement follows last week’s debut of Nintendo‘s flagship Switch 2 and sets the stage for a new chapter in portable gaming.

Continue Reading

Technology

Vantage raises $820 million in a first-of-its-kind cloud and AI data center deal in Europe

Published

on

By

Vantage raises 0 million in a first-of-its-kind cloud and AI data center deal in Europe

U.S. data center operator Vantage has raised 720 million euros ($821.4 million) — the first of its kind deal in Europe.

The asset-backed securitization (ABS) deal, the first ever euro-denominated with data center assets on the continent, involves four data centers in Germany.

The company said it will be paying on average a 4.3% coupon on the bonds issued through the process.

In an ABS, Vantage raises money by using its data center infrastructure and future revenues from the facilities as collateral.

Vantage said it will use the funds primarily to pay off existing construction loans previously secured for the facilities.

“We believe the ABS market in particular is kind of best suited for our type of asset, which is real estate centric, high credit quality tenants, long term leases, something that is almost perfect for the ABS investor,” Sharif Metwalli, chief financial officer of Vantage Data Centers, told CNBC.

Vantage added that despite the large sum borrowed, the demand from investors exceeded the amount raised.

“So this transaction was actually pretty highly levered, frankly,” Rich Cosgray, senior vice president of global capital markets at Vantage Data Centers told CNBC. “It was higher leverage than our prior transaction and we had some investors that just weren’t comfortable at that leverage level.”

“Yet, despite that, we were basically two and four times oversubscribed on the respective financings, and we were able to tighten pricing pretty meaningfully through the marketing process,” Cosgray added.

The four facilities — two in Berlin and two in Frankfurt — have access to around 55 megawatts of power and “are fully leased to hyperscale customers,” the company said in a statement. The four facilities were valued at more than $1 billion earlier this year.

Last year, Vantage also raised £600 million through the first-ever securitization of a data center in Europe, the Middle East and Asia (EMEA). The deal involved two units from the company’s Cardiff campus with 148 megawatts of electricity power. Across the region, the company has 2,500 megawatts of data center capacity either operational or under development.

The transaction was led by Barclays Bank and Deutsche Bank as joint lead managers and Vantage was represented by the British law firm Clifford Chance.

Continue Reading

Technology

IonQ buys UK quantum startup Oxford Ionics for more than $1 billion

Published

on

By

IonQ buys UK quantum startup Oxford Ionics for more than  billion

Cheng Xin | Getty Images

IonQ is buying United Kingdom-based quantum computing startup Oxford Ionics in a deal valued at nearly $1.1 billion.

Shares gained about 4%.

The companies said in a release that the deal will combine IonQ’s quantum computing hardware and software knowledge with Oxford Ionics’ semiconductor chip technologies. The company aims to deliver breakthroughs in the field and capitalize on growing revenue opportunities.

“We believe the advantages of our combined technologies will set a new standard within quantum computing and deliver superior value for our customers through market-leading enterprise applications,” said IonQ CEO Niccolo De Masi in a release.

The deal, which is expected to close this year, includes $1.065 billion worth of IonQ shares and about $10 million in cash. The merged company expects to build systems with 256 qubits by 2026, over 10,000 by 2027 and 2 million by 2030.

Interest in quantum computing has skyrocketed in recent months after technology giants Microsoft and Alphabet announced new chip breakthroughs. Experts tout the technology’s ability to solve intricate computing tasks unachievable by other computers.

Read more CNBC tech news

IonQ’s CEO previously told CNBC that he wants the company to become the “800-pound gorilla” in the quantum world.

Shares of Maryland-based company, which went public through a special purpose acquisition company in late 2021, are down about 6% year to date. The stock has soared more than 400% from a year ago.

WATCH: IonQ CEO on earnings: Leading the world in ‘the quantum internet’

IonQ CEO on earnings: Leading the world in 'the quantum internet'

Continue Reading

Trending