There are arguments that Amazon has emerged as one of the smartest investments you can make in 2025. The company is eyeing continued growth as it leads the cloud computing sector with its Amazon Web Services (AWS) business. However, a new report says Amazon (AMZN) is budling a new AI model, so could this be the stock’s next AWS?

The success of its cloud-computing arm is undeniable. Now, its work in artificial intelligence could set it on course to be one of the most promising companies in the emerging sector. With so much competition, the e-commerce juggernaut may be able to leverage the technology to surpass a host of competitors.

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Source: Finbold

Also Read: Amazon (AMZN) a Top 5 AI Stock? Here’s What Bourgeon Capital Says

Amazon Reportedly Building New AI Model Amid AWS Success

In late February, Amazon emerged as one of the top growth stocks in Warren Buffett’s portfolio. The Omaha Oracle had embraced the company that was on the cusp of competing in the ad revenue and cloud computing space in a big way. Now, it may be preparing to increase competition in another key market.

According to a new report, Amazon (AMZN) is developing its own AI model as it could be the stock’s next AWS. Specifically, the development of its own intelligence program is positioning it to compete with the likes of ChatGPT developer OpenAI and Antrhopic.

Amazon AMZN
Source: Reuters

Also Read: Apple, Meta, & Amazon Lead Tech Firms Pledging $1T in US Investment

The model would be different than many of its competitors, however. According to Business Insider, the model would feature “reasoning” capabilities and would launch by June of this year. If it is a success, the firm’s foray into AI technology could mirror its success with its highly lucrative AWS arm.

Amazon Web Services generated $25 billion in net sales in Q1 of last year. Since then, it has only continued to grow. Moreover, it dominates the market, owning 31% of the total share as of last year. Although Amazon AI won’t be the first to market, it has shown the potential to excel in its diversification. Moreover, it could be as successful as its cloud-computing entry in due time.

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