Tech giant Amazon (AMZN) is making a major change to its AI teams by combining several of them into a single group. In addition, Peter DeSantis, a senior leader from Amazon Web Services (AWS), will lead this new unit. CEO Andy Jassy explained that the group will bring together Amazon’s AGI (Artificial General Intelligence) team, which builds Nova AI models and powers Alexa, with the company’s chip development team and its quantum computing research.
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This update builds on Amazon’s earlier decision to combine AI work from Alexa and AWS after OpenAI launched ChatGPT in 2022. That earlier move showed that Amazon wanted to create powerful AI tools similar to ChatGPT. Notably, the new group will also include Annapurna Labs, a startup Amazon bought in 2015 that helped the company build custom computer chips and AI hardware.
Interestingly, Jassy said that Amazon is at a key moment where AI will be a major factor in customer experiences. Moreover, DeSantis, who led AWS’s core engineering teams, now reports directly to Jassy. Separately, Rohit Prasad, the long-time leader of Alexa’s speech team and head of the AGI unit, will leave Amazon by the end of the year. Meanwhile, Pieter Abbeel, who joined Amazon through its purchase of Covariant, will now lead the team building Amazon’s main AI models.
Is Amazon a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 44 Buys and one Hold assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMZN price target of $296.12 per share implies 33.2% upside potential.
