Does Amazon want to be an AI innovator or an AI enabler?
AWS enables thousands of other companies to run their business. Amazon has designed their own Graviton ARM CPUS and their own Trainium AI chips. You can access these through AWS for your business.
I think Amazon sees AI being used in AWS as a bigger money generator than designing new AI algorithms.
This is not mutually exclusive. They have home made robots and let others sell robots on their website. The same way they want to use AI and have resources to make their own. One way to use is to drive those robots. Another to enhance their web site. Current version sucks. I recently return the item because their bot told it has functionality while in fact it didn't.
Also I think that they realize this is just a money losing proposition right now for the most part. And they're not going to have a problem getting in later when there's a clear solution. Why fight it out? I don't think they're going to miss much because they can use any models they need and as you said some of that stuff may be run on their servers
Reading comments from the appropriate VPs will illuminate the situation.. Swami is looking to democratise AI, and the company is geared towards that more than anything else.
Disclaimer; I work for amzn, opinions my own.
https://aws.amazon.com/blogs/machine-learning/aws-and-mistra...
Selling pick axes vs. mining for gold yet again!