• D.C.
  • BXL
  • Lagos
  • Dubai
  • Beijing
  • SG
rotating globe
  • D.C.
  • BXL
  • Lagos
Semafor Logo
  • Dubai
  • Beijing
  • SG


In today’s edition, we talk to Amazon AWS VP Matt Wood about the company’s strategy around artificia͏‌  ͏‌  ͏‌  ͏‌  ͏‌  ͏‌ 
 
rotating globe
June 23, 2023
semafor

Technology

Technology
Sign up for our free newsletters
 
Reed Albergotti
Reed Albergotti

Hi, and welcome back to Semafor Tech, a twice-weekly newsletter from Louise Matsakis and me.

When Microsoft announced it was incorporating OpenAI’s GPT technology into the Bing search engine, the company’s stock skyrocketed. That had less to do with Bing and more to do with Microsoft’s core business. That’s serving deep-pocketed enterprise customers that would now have access to Microsoft’s secret weapon: OpenAI, home to the genius computer science PhDs developing the algorithms.

What wasn’t clear at the time was how quickly others would be able to match the sophistication and size of OpenAI’s technology. I spoke to a lot of very smart people in the technology industry then who thought there was only room for a small handful of companies providing these “foundation models” that would be tailored for specific purposes. Microsoft had solidified its place as the first mover.

Amazon took a different tack. Instead of orienting itself around a single provider of foundation models, it sought to build a marketplace where all the other foundation models could be accessed. In essence, it’s a bet that the future of AI is an explosion of highly specialized generative AI models, many of which will be open source. Amazon won’t try to make money by building the best AI. It will earn revenue by making it easy for its customers to run any AI model they want.

It’s a long-term gamble that may turn out to be the right one. This week, I spoke with Matt Wood, Amazon’s vice president of product for the company’s cloud business. It was a fascinating look into the company’s AI strategy that helps frame the current state of the industry.

Move Fast/Break Things
Getty Images/Slaven Vlasic for The Girls’ Lounge

➚ MOVE FAST: Position filled. Twitter’s new CEO, Linda Yaccarino, is dialing down some of the drama at the social network. She helped repair relations with cloud services provider Google, including resuming payments, and European regulator Thierry Breton actually had nice things to say about Twitter after meeting her during his visit to California.

➘ BREAK THINGS: Help wanted. The hype over artificial intelligence has created an imbalance in the labor market. Job postings that mention generative AI increased 20% in May, but that’s not keeping up with demand for such positions, based on data from Indeed.

PostEmail
Artificial Flavor

tvOne

One of Indonesia’s most popular television channels now features three virtual news anchors, reports Rest of World. TvOne based them on the station’s human journalists, who work in tandem with their automated counterparts. Anchor Fahada Indi can feed news developments to her digital avatar Nadira, for example, which reads them in English, Chinese, Javanese, and other local languages. These so-called “metahumans” have other uses in Indonesia — the immigration office of the main international airport in Jakarta recently deployed four virtual spokespeople.

PostEmail
Q&A

Matt Wood, vice president of product for Amazon Web Services, is at the tip of the spear of Amazon’s response in the escalating AI battle between the tech giants.

Q: Microsoft and Google are both nipping at your heels by offering these huge AI models. How does AWS view this market?

A: I have not seen this level of excitement and engagement from customers since the very earliest days of AWS. We have over 100,000 customers today that routinely use AWS to drive their machine-learning capabilities and these generative AI systems.

One of the interesting differences with these generative models is that they make machine learning easier than ever before to use and apply. We built a capability that we call Bedrock, which provides the very easiest way for developers to build new experiences using this technology on AWS. You just provide a prompt, select which model you want to use, and we give you the answer.

Where we kind of think of things a little differently is that it doesn’t seem that there’s going to be one model to rule them all. As a result, our approach is to take the very best, most promising, most interesting models and to operationalize them so customers can really use them in production. Customers can combine models from Amazon and from third parties in ways that are interesting and novel.

Q: How many models are there now?

A: On Bedrock, we have models from Amazon we call Titan. We provide models from Anthropic, AI21 Labs, which has great support for different languages. We’ve got models from Stability AI, and we’ll have more coming in the future.

Q: So you’re basically curating the best models out there?

A: Indeed. But there’s an old Amazon adage that these things are usually an “and” and not an “or.” So we’re doing both. It’s so early and it’s so exciting that new models are emerging from industry and academia virtually every single week. But some of them are super early and we don’t know what they’re good at yet.

Amazon

Q: Can you give me any customer examples that stand out?

A: It’s super early and we’re still in limited preview with Bedrock. What has struck me is just the diversity and the breadth of the use cases that we’re seeing. A lot of folks are using these in the kind of unsexy but very important back end.

So personalization, ranking, search and all those sorts of things. We’re seeing a lot of interest in expert systems. So chat and question-answer systems. But we’re also seeing a lot of work in decision-making support. So, decomposing and solving more complicated problems and then automating the solution using this combination of language models under the hood.

Q: What’s the vision for who will best be able to take advantage of these products? Do you see a possibility that startups could basically just form a company around these APIs on Bedrock?

A: There are going to be waves and waves of startups that have an idea or an automation that they want to bring into companies, or an entirely new product idea that’s enabled through this.

An interesting area is larger enterprises that are very text heavy. So anywhere there is existing text is fertile soil for building these sorts of systems.

And what’s super interesting is that we’re seeing a lot of interest from organizations in regulated fields that maybe traditionally don’t have the best reputation for leaning into or being forward-thinking in terms of cutting-edge technologies. Banking, finance, insurance, financial services, healthcare, life sciences, crop sciences.

They are so rich in the perfect training data. Volumes and volumes of unstructured text, which is really just data represented in natural language. And what these models are incredibly capable at is distilling the knowledge and the representation of that knowledge in natural language, and then exposing it in all of these wonderful new ways that we’re seeing.

For the full conversation, read here.

PostEmail
Semafor Stat

Reddit’s 2022 revenue, representing a 38% increase from the year prior, according to The Information. That’s a respectable jump for most companies, but the social media site more than doubled its revenue in 2020 and 2021 — meaning growth had begun slowing long before users started flooding the site with porn as part of an ongoing protest against Reddit’s new API policies.

PostEmail
Release Notes
  • Stability AI is releasing Stable Diffusion XL, a new image-generating model that can create “hyper-realistic creations for films, television, music, and instructional videos.”
  • Spotify is working on a “supremium” subscription service that will give users access to high-fidelity audio — a feature Amazon and Apple already offer as part of their standaring music streaming plans.
  • TikTok is experimenting with an in-app store called “Trendy Beat,” which sells items that have appeared in viral videos, such as a tool to remove ear wax and a pet hair brush.
PostEmail
Enthusiams

SpaceX’s Starlink satellites have been a game changer, but maybe they’re overkill. An AT&T-funded experiment just beamed an LTE signal from space to an unmodified smartphone. AST SpaceMobile did it by unfurling a massive antenna in low earth orbit. The technology could supplement ground-based service by filling in areas with no cell towers. Death to dead spots!

PostEmail
Obsessions

Twitter/Screenshot

There’s a bizarre network of shopping websites taking over Twitter. With names like Zinno, Vappo, Loza, and Hete, the sites are running a large volume of advertisements from verified accounts for the same cheap gadgets, including a mini digital camera, an “anti-vomiting” cat feeder, and an LED tutu skirt. Most of the sites use nearly identical design templates, with “about” pages that invite you to “Meet Our Family!” Some claim to be based in Denver or Manchester, England, while one lists the address of a shopping center in Miami as its “representative office.”

It’s not clear who or what may be behind the sites — I started losing my sanity simply trying to count them all. Some Twitter users speculated they could be part of a scheme to steal credit card information, but my personal hunch is that they’re the work of a spammy marketing agency in China. Regardless, the whole thing doesn’t exactly bode well for Twitter’s advertising business. If you have more information about what’s going on here, please get in touch.

Louise

PostEmail
Ahem

Getty Images/Andel Ngan, Alain Jocard/AFP

The singularity is here. No, not that singularity — this is the one where tech reporting and sports coverage finally become one. When I moved to the Bay Area in 2013, I was struck by how similar tech reporters were to the sports journalists I knew from the scrums that huddled around players in post-game locker rooms. (I covered sports for The Wall Street Journal). Instead of team trades, tech reporters broke news on mid-level executives leaving one startup for another. Silicon Valley didn’t have star quarterbacks. It had star CEOs.

Still, even though tech reporters have smaller audiences than their sports counterparts, they cover companies that have important consequences for the economy. On Tuesday, those worlds converged. The biggest story of the day: The potential mixed martial arts match between Twitter owner Elon Musk and Meta CEO Mark Zuckerberg. Less than a year ago, tech reporters were writing about how Musk’s takeover of the social network would hurt democracy. Now the coverage is about fun and games.

— Reed

PostEmail
Hot On Semafor
  • Weeks after rescuing First Republic, JPMorgan is already losing some top bankers with ties to the wealthy clients it badly wants, Liz Hoffman scooped.
  • A new generation of data centers being built in Africa’s smaller economies are fueling a $5 billion market opportunity, Alexis Akwagyiram reported.
  • The large and influential Republican Study Committee is backing a new budget proposal that includes cuts to Medicare and Social Security, Joseph Zeballos-Roig reported.
PostEmail