Amazon’s AWS CEO, Adam Selipsky, draws a resemblance between the current AI hype and the dot-com bubble of the 1990s. In a recent interview with Wired, Selipsky expressed his belief that while the internet was initially underhyped, the companies leading the charge were overhyped. This sentiment extends to the current wave of AI companies, with Selipsky cautioning that some are “massively overhyped.”
This perspective is shared by COO Brad Lightcap of OpenAI, who believes that the expectation of AI delivering substantial business change is overblown. Emad Mostaque, CEO of Stability AI, also shares a similar cautious outlook, warning of a potential AI bubble.
Despite these warnings, Amazon’s AWS stands to benefit significantly from the AI industry. As a leading cloud computing provider, AWS provides the essential infrastructure for AI development, positioning itself to profit from the burgeoning industry. In its recent quarterly financial results, AWS highlighted its collaboration with companies like Salesforce, Merck, and LG, emphasizing the growing importance of AI in a variety of sectors.
However, AWS isn’t just selling infrastructure; it’s also investing heavily in its own AI products. The company recently announced a $4 billion investment in AI startup Anthropic and is developing its own AI assistant, Q, along with other AI capabilities.
While Selipsky acknowledges the transformative potential of AI, he also urges caution. Nevertheless, the AI market is expected to add over $4 trillion to the global economy, according to experts, making it a significant force in the future.
In the end, as with any gold rush, selling the essential tools can prove highly lucrative. For Amazon, this means positioning itself both as a provider of essential infrastructure and as a developer of cutting-edge AI products to ensure its success in the AI industry.
