Amazon (AMZN.US) to launch video AI model as it doesn't want to lag behind in AI race

Amazon.com (AMZN.US) has developed a new generative AI that can handle images and videos in addition to text, reducing its reliance on AI startup Anthropic, according to people familiar with the matter.

The new AI model's development will help Amazon reduce its reliance on Claude, a popular product on Amazon Web Services, the two people said.

The new large language model, code-named Olympus, will be able to understand scenes in images and videos and help customers search for specific scenes, such as a winning basketball shot, through simple text prompts, according to the people.

Amazon last week invested $4 billion in Anthropic, a competitor to OpenAI, the same amount it invested in September to tap into generative AI technology.

Amazon may announce the launch of Olympus as early as next week at its annual AWS customer conference, the people said.

Amazon has been trying to counter the perception that its rivals Google, Microsoft and OpenAI are ahead in developing generative AI.