Tech giant Amazon (AMZN) is planning to use artificial intelligence in order to make creating movies and TV shows faster and cheaper, according to a Reuters report. The project is being led by Albert Cheng, the operations chief at Amazon MGM Studios, who is overseeing a team that is building AI tools to support the creative process. These tools are set to be tested in a closed beta with industry partners starting in March, with results expected to be shared by May.
Claim 50% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Interestingly, Cheng described the AI Studio as a small, startup-like team inside of Amazon that follows Jeff Bezos’ “two-pizza team” philosophy, which means the group is kept small and focused. In addition, most of the team is made up of engineers and scientists. Cheng explained that the high cost of producing films and shows makes it hard to take risks, and he believes that AI can help speed things up while still relying on human creativity for the actual storytelling.
At the same time, Amazon is aware of the concerns in Hollywood that AI could replace jobs. However, the company emphasized that writers, directors, actors, and designers will be involved at every stage, with AI used only as a tool to support their work. Moreover, Amazon Web Services is expected to provide cloud support for the project, and Amazon plans to work with multiple large language model providers so that creators have more choices for both pre-production and post-production work.
Is Amazon a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 36 Buys and one Hold assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMZN price target of $298.53 per share implies 27.4% upside potential.
