Amazon (AMZN.US) is reportedly developing an AI reasoning model that is set to be released in June.

Amazon (AMZN.US) is reportedly building its own artificial intelligence models, including advanced reasoning capabilities. A person involved in the project said the new product is expected to be launched under the nova brand in June. Nova is a series of generative AI models that amazon launched late last year.Reasoning models are quickly becoming a powerful tool in the AI market, used mainly to solve complex problems. The report added that Amazon hopes its new model will adopt a "hybrid reasoning" approach, which can give quick answers while also thinking more complexly within the same system.Amazon's potential new model may also compete with Anthropic, which developed a hybrid AI model called Claude3.7Sonnet that includes reasoning capabilities and is considered the first "hybrid model" in the market. Anthropic is backed by Amazon and Alphabet (GOOG.US). The new model will also compete with OpenAI, which is backed by Microsoft (MSFT.US).One of Amazon's primary goals is to make its Nova reasoning models more affordable than competitors including OpenAI's o1, Anthropic's Claude3.7Sonnet and Google's Gemini2.0Flash Thinking, according to the people familiar with the matter.About a month ago, Amazon CEO Andy Jassy said the cost of reasoning in AI would "come down dramatically," which is positive for both Amazon's customers and its business.