Amazon Web Services Executive: AI Business Has Tremendous Potential

August 4th, Amazon (AMZN.O) cloud business leader stated that customers are beginning to shift from using the company's services to train AI models to integrating these models into their own business processes, driving the growth of inference computational demand.

Amazon Web Services CEO Matt Garman said on Monday, "We still see some companies using large-scale training clusters, but as these models become more popular and powerful, more and more companies are integrating this inference capability into their workloads." He stated that the potential of the AI business is "tremendous," and the company will continue to increase capital expenditure to meet the growing demand.

As the world's largest provider of computing power and data services, Amazon stated last week that it expects capital expenditures to reach $220 billion by 2026, up from the previously forecasted $200 billion. The increase in spending reflects the rising prices of storage chips and other components needed for data centers.