①Amazon Amazon is investing heavily in AI infrastructure, and the head of its cloud business, AWS, stated that the company is confident these investments will pay off; ② Recently, Amazon 's large-scale data centers... Project Rainier has been announced to be fully operational and plans to double its size by the end of the year;③ But at the same time, Amazon plans to cut 14,000 jobs to make itself more streamlined.
Amazon is investing heavily in artificial intelligence. Regarding infrastructure development, the company's cloud business head stated that the company is confident these investments will pay off.
In an interview on Wednesday (October 29), Amazon Web Services (AWS) CEO Matt Garman said that despite concerns that the AI boom might turn into a bubble, the company is “quite pleased” with its massive investments in the field .
Garman stated, "Others may make more speculative investments. We, on the other hand, focus very much on how to reasonably assess the risks and consider our long-term outlook for this business."
Project Rainier Data Center
Garman made these remarks as Amazon announced the launch of a data center initiative called Project Rainier, an $11 billion artificial intelligence data center project in Indiana.
Rainier is one of the world's largest AI data centers, dedicated to training and running the Claude model from Anthropic. Anthropic is a key AI partner of Amazon and one of OpenAI's main competitors.
As of now, the data center is fully operational and has deployed over 500,000 AWS Trainium 2 chips. According to Garman, Rainier also plans to double its size by the end of the year.
Garman also pointed out that AWS's capital expenditure on infrastructure construction has approached $100 billion in the past year.
Amazon layoffs
However, the official announcement of Amazon's data center launch coincided with the company's largest round of layoffs in history.
On Tuesday (October 28), Amazon announced plans to cut 14,000 jobs to streamline the company, citing artificial intelligence technology as enabling businesses to "innovate faster."
In a blog post, Beth Galetti, Amazon's senior vice president of employee experience and technology, said that Amazon also needs to reduce management layers in order to move things forward more quickly.
Galetti added, "The company is reallocating resources to its most important investment projects, reducing investment in some areas while increasing hiring in others."
(Article source: CLS)
