However, Amazon claims that the productivity gains from AI are also reaching Amazon customers. According to AWS, Reddit gained advance access to Amazon’s modern Forge service and was able to train an artificial intelligence model based on millions of content moderation decisions. Reddit says its artificial intelligence model created with Amazon has developed “social intuition” and can now assist moderate content for millions of online communities.
AI bubble
While Amazon is betting gigantic on artificial intelligence, Garman is skeptical about the enthusiasm in the broader industry. This year, early-stage labs like Mira Murati’s Thinking Machines Lab and Ilya Sutskever’s Unthreatening Superintelligence have secured multi-billion-dollar investments, even though they are not yet deploying widely used products.
“When people talk about a bubble, I think these are the deals that are most at risk,” Garman said, referring to artificial intelligence startups that have raised billion-dollar seed rounds. “Where the startup valuation is $3 billion and it doesn’t include lines of code. Maybe, but maybe not. Those are the ones where I think there are still open questions.”
Garman, however, insists that Amazon’s investments in artificial intelligence are justified. Over the past 12 months, the company has rolled out 3.8 gigawatts of modern infrastructure and just announced an investment of up to $50 billion in AI data centers for the US government. Amazon says it is still able to sell out the modern powers as soon as they come online.
“I see the value that so many companies are deriving from AI today, and I don’t see it going away,” Garman said. “They are receiving real profits. They are providing real value to their customers. This is a good sign for us and we are still in the early stages of determining what this value will be.”
While Silicon Valley continues to pursue superintelligence and AGI, AWS appears to be taking a more grounded approach. Time will tell if this will be enough to remain the king of cloud service providers.
Question for viewers:
With the launch of Gemini 3, I hear many people in the AI industry saying that progress in AI has not stopped, despite what skeptics may think. I’d like to hear from Model Behavior readers: What are you doing with artificial intelligence today that wasn’t possible 12 months ago? On the other hand, is the technology the same (in terms of capabilities) as it was last year? Reply in the comments below or shoot me an email – I’m cheerful not to mention it.
This is the release the Model Behavior Bulletin. Read previous newsletters Here.