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You've built quick AI that works across all applications, but I think that the main issue or point is that it builds context over time.
What were you solving for with quick.
Yeah, quick quick as it's the way for companies to get AI and an AI assistant in the hands of every employee that they have across the company, and it allows customers to leverage data across all of their enterprise. But excitingly, today we're launching a desktop application and I personally have been using it for the last couple of weeks and it's the single best AI productivity enhancement I've
tried of anything. It's really incredible. It allows you to work across your email, across your slack, across all the information on your desktop, quickly pull information across various different settings, and it learns with you as you go, so it learns who your coworkers are, learns who you operate with, learns who you write to. It's an incredible, incredible productivity enhancer, and it's something that launching today and really excited about.
AWS is pushing deeper into applications in the agentic AI context that is everything.
From healthcare, hiring, supply chain.
What was the need that you saw, because that a lot of the customer of Base and aws will for something quite similar.
Yeah, we think, and it's true many of our customers are going to reinvent many of the applications that are out there. But we see that with agents out there today and AI, every application is being remade. And with Amazon Quick we saw that opportunity to remake personal productivity inside of an enterprise setting. And with connect we're doing the same across many enterprise applications, whether it's with supply chain,
whether it's with contact centers, whether it's with healthcare. We see the application opportunity to apply AI and agents to a number of these applications. And these are areas where Amazon has a lot of expertise and where we can add that expertise in the customers use AI to completely reimagine many of these traditional thirty forty fifty year old processes.
The companies it makes you think of names like Salesforce Service now sap key customers. What kind of conversations did you have with them about why the broad suite.
Through Amazon Connects is useful?
Yeah, and they may these the things that we're building are actually quite complementary to many of those partner offerings, and so I think if you think about actually Connect, Connect and Salesforce have had a partnership for a really long time where many customers use those together in order
to provide even better outcomes for their customers. And we think that's going to continue to be the case today, where things like Connect Decisions is really a helpful add on the customers that are doing supply chain and it's an agentic helper to help you make great supply chain decisions, but use it together with your existing supply chain solution, and so it's really complementary to many of those products that our customers and our partners build on top of AWS today.
What's the strategy and goal for AWS and pushing deeper into the application layer. What do you think it will change for you rather than than what you just outlined with the customers.
We've always thought that AWS and we always have produced offerings for customers at every layer of the stack. We obviously excel at the infrastructure layer, where AWS Cloud is by far the largest and the most established, and we've also built services higher up the stack, things like databases things like analytics services, things like AI services, and increasingly
with Connect. For the last ten years, we've been offering applications in the top layer, and we've always said there's millions and millions and millions of customers who build applications of that top layer. We thought, we always think that we'll build a few some of those will show customers
things that they're able to do with that technology. Sometimes it's to expose areas where we're experts and we think that we can provide value to customers, but we always know that there's going to be lots of players up there at the application.
What AWSS too, it's about is AI revenue run rate, which getting into detail, seems to focus a lot on the frontier models, how they're access to, how they use But if you think about quick Connect applications, is that something Matt that you see making meaningful contribution in the AI revenue bucket?
Absolutely we see.
You're absolutely right.
A lot of our AI revenue today is on Amazon Bedrock and it's through accessing frontier models. But we see that every application in the world is going to be remade with AI. We think agents are going to totally change how work is done, how jobs are efficiently done, and we think we have some opportunities to have some unique offerings in that space that really change the game. And so we think that Amazon Quick is one of those.
We think Connect is one of those. We think Hero on the coding side can really help people in and when you have some of these applications, that often inspires others to build around them. And we think it's a great opportunity for us where we think we have differentiated ideas to really change how things have been done for a long time.
Open AI, Yeah, what's new, what's changed in your relationship?
Yeah, well, we're quite excited about the partnership that we're announcing with them today. So yeah, So for a long time, when we built Amazon Bedrock as a way for our customers to access frontier models and access AI models, we've always started with the position that we wanted to offer choice and we wanted to offer all of the best models available out there. And today we're excited to be
bringing open AI into Bedrock. It's I think it's it's something that our customers have asked for for a really long time, and.
We're talking specifically about frontier models, not just open weighted models, which was.
That's right, We've we've had open weight models for a while, but yes, this is the frontier model. So starting in preview today we have open AI's model five point four and five to five is coming in the next couple of weeks. We're also collaborating on a new offering which we called Managed Agents featuring open Ai, which is a complete manage Asian capabilities, so customers can really easily make stateful agents and build agentic applications together with Bedrock and
open Ai. And it's really just the start of a long term partnership that we've established together. As the teams have gotten together, we see opportunity for us to really invent new capabilities for our customers to go and build interesting applications together. And really excited about working together with the open ai team and unlocking more things that customers can build on AWS.
Think back to twenty twenty three, open AIS models were only available in Azure. Right since then until now, what kind of behaviors did you recognize in the AWS customer base? Did they literally open it as your accounts so that they could have access to something that wasn't available in AWS? And that was kind of the indicator to you that you needed to make our codels.
Customers have long told us they want to be able to use the absolute best cloud with the best set of models available, and they wanted to run all their applications in AWS, and they weren't able to run and they did every and they did oftentimes, our customers run every part of their application in AWS, and then they access if they wanted to use open AA models, they'd either use them direct from them in their first party or through Azure or somewhere else. Now they don't have
to make that trade off. And with the open AI team and the AWS team, we're really excited to not
have to force customers into that choice. And if they want to build all in the AWS set of tools and capabilities, it's where their applications run, it's where most customers store their data, it's where they feel most secure, and they can now run that together with open AI models, together with the whole suite of models that we have in AWS, including Anthropic models, including open models, including Nova models, a whole set of models, and they can combine the
best of what they want to do in order to build their applications.
It's early days I appreciate that, But what is the sort of one metric you could point me too that gives you the conviction there is absolutely demand there at the enterprise level or otherwise for open AIS models.
Well, look, I think the team announced a statistic recently that Codex, which is also available in AWS in previews starting today in the last couple of weeks, has grown from two million users to four million users in just a really short amount of time.
That is incredible.
I mean, that is really unprecedented growth and it just shows that they're building really, really capable.
Opportunities out there.
But our customers still say, I would love to access and power Codex through Bedrock, so I have the security of Bedrock and AWS. Now with the launches today, all of those millions and millions of customers that are loving Codex can choose Bedrock as the provider and get the AWS security that comes behind that.
I think about Claude is a comparisonal case study, right, Yeah. What was so interesting about claud through Bedrock is anthropic got the benefit of a platform.
That's right.
You channeled business to them, that's right. But equally people want to use Claude, so that channeled business to Bedrock.
That's right.
Do you see that playing out similarly with open Ai?
That's exactly what one of the things that the Opening It team is so excited about is partnering with AWS.
Is that exact partnership And I think it's one of the things that we do well at AWS is partner with folks that we're building together with and just like with Anthropic, which we have a fantastic partnership with, and we've really built this business together with Anthropic where we lean into them, we help their customers build applications on top of AWS and find out the best ways to use their claud models, and we've seen their business really
take off. And that's what we anticipate doing with open a team as well.
Have you Matt had to make an assessment of how much of the spending that Amazon's committed to is literally dedicated to open Ai infrastructure wise to support the ramp up of availability.
Yes, well, we absolutely are expecting a lot of growth there, which we're quite excited about. And Opening Eyes made a large commitment to AWS right to use Trainium in particular, but across our AWS services to to grow their business and so so yes, they're they're strongly committed to growing their footprint on top of a WS and we expect bedrock to grow really rapidly as well.
Does the demand meet the infrastructure that's been put in place? Where are we in the balance between future supply and current demand?
There is still I think more demand out there than there is supply, right for sure?
And is that true of open AI. I can appreciate were in preview as you speak.
Well, yes, it's it's it's the first day, so I can't tell you that, yes, but but yes, the the open A team, I think would would gladly take more capacity from us this year and next year in the year after that as we add it. And so we're we're still working really hard to continue to add more capacity, whether it's power, whether it's chips, whether it's memory, all around the world. And I think that you know, we're
we're planning for success across many dimensions there. And but yes, today the world is still largely supply constrains when it comes to AI capacity.
We are in a strange situation where open AI models can now run on aws, but Microsoft will benefit financially because the latest terms of their agreement they've ended exclusivity, but OpenAI continues to make payments to Microsoft.
Ye, how do you think about that?
Oh, that's okay. Look, Microsoft has benefited from the growth of AWS since the very early days. In fact, we've supported Windows licenses as an example, I think since two thousand and seven, two thousand and eight, I can't remember the exact year. But so Microsoft has benefited. They build great software, they have good partnerships, and they should benefit from those, but customers really want to use those technology. SQL server is a good example that runs great on ABS.
In fact, many of our customers tell us that sql server runs better, way better on AWS than it does on Azure. And so for those customers, running an ABS is where they get the best reliability, the most security, and the broadest set of features.
And so that's great.
And if Microsoft benefits because their software or their partnerships or their licenses are being used inside of ABS, that that's great. And in this case, we partner with Microsoft just like we partner with Oracle and other providers that build software, and we want to make all capabilities available on ABS for people to build.
You built bedrock and.
Stateful run time at a time where access to models was constrained. Now, if open ai is the case, it's available broadly everywhere. You know, what's the benefit of accessing it through AWS? What's the pitch really? I mean for the and we're calling this Managed Agents is managed Eliden. We called it Stateful Runtime before, but the launch name of it is called Managed Agents, and it's just we're just as excited about that as we've ever been. By the way, so that that that product.
Is something that we Why does a customer need to use ABUS? That's the simple question, why do you want to use AWS? Well, this is the only place that we'll have this managed Agent's product together with with open Ai, and we think it's going to be the single best and easiest way for you to go and build agentic applications that learn with you over time, that get better
over time. It's a really simple way to It includes kind of this agentic harness and a bunch of these pieces together that makes it really easy to build agents that leverage the latest frontier models from open Ai. And so we're very excited about that product. We think that
that is going to take off. Like investors, it's launching in preview today as well, and it'll be ga here in the next couple of weeks, and we think that customers are going to really love how easy it is to build agentic applications with that product.