E-commerce giant Amazon jumped into the booming field of generative artificial intelligence, the technology behind ChatGPT, the company announced Thursday. AMZN stock climbed on the news, as did other AI companies.
Amazon joins Google owner Alphabet and Microsoft in an attempt to cash in on the new and highly popular technology.
AMZN stock jumped 4.7% to close at 102.40 on the stock market today.
Alphabet and Google previously announced plans to bring ChatGPT to the public. Meanwhile, Amazon's cloud computing unit, Amazon Web Services, plans to target corporate customers.
AMZN Stock: Expand Access To Custom Chips
The three largest cloud computing companies, AWS, Microsoft and Google, have moved AI development to the top of their to-do list. Each is trying to capitalize on the booming interest in artificial intelligence technology.
AWS will also expand access to custom-made chips. They say the chips can run AI software more efficiently and cheaper than competitors can.
"Machine learning has been a technology with high promise for several decades. But it's only been the last five to 10 years that it's started to be used more pervasively by companies," Chief Executive Andy Jassy said in the company's annual letter to shareholders. Amazon released the missive from Jassy on Thursday.
Jassy went on to say: "We will continue to invest substantially in these models across all of our consumer, seller, brand and creator experience."
Machine learning is a branch of artificial intelligence.
In addition to AMZN's stock rise, Alphabet stock climbed 2.7% to finish at 107.43. Microsoft rose 2.2% to 289.84.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
