Amazon teams up with AI startup Hugging Face to improve efficiency of AI model – NASDAQ:AMZN

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Amazon announced a partnership with AI startup Hugging Face to simplify running AI models on Amazon’s custom computing chips. This collaboration will enable running AI models on Amazon Web Services (AWS) chip called Inferentia2. Hugging Face, valued at $4.5 billion, is a platform for AI researchers and developers to share chatbots and other AI software. Amazon, Google, and Nvidia back Hugging Face, making it a premier destination for developers exploring open source AI models like Meta Platforms Inc. Call 3.

Efficiency is crucial for Hugging Face, ensuring that many people can run models profitably. AWS aims to attract more AI developers to use its cloud services for AI delivery. While Nvidia leads in training models, AWS claims its chips can operate trained models at a lower cost over time. Recent reports indicated that Matt Garman will take over as CEO of AWS, succeeding Adam Selipsky, effective June 3. AWS became a $100 billion annual revenue business during Amazon’s latest quarterly results.

Amazon analysts highlight the advantages of AI chip development and diverse offerings for large language models. Amazon shares have gained 59% in the last 12 months, with investors being able to gain exposure to stocks through SPDR Select Sector Fund – Consumer Discretionary and Fidelity MSCI Consumer Discretionary Index ETF.

In terms of market performance, AWS led the global cloud services market in the fourth quarter, accounting for 31% of total cloud spending. Amazon shares traded up 0.39% at $183.96 at the last check on Thursday.

Overall, Amazon’s collaboration with Hugging Face to simplify running AI models on custom computing chips shows their commitment to advancing AI technology and attracting more developers to use AWS for AI delivery. The partnership aims to make running AI models more efficient and cost-effective, providing opportunities for growth and innovation in the AI industry. With changes in leadership at AWS and strong financial performance reported, Amazon continues to position itself as a key player in the AI and cloud computing market.

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https://www.benzinga.com/news/24/05/38990924/amazon-and-ai-startup-hugging-face-partner-to-enhance-ai-model-efficiency