Amazon's OpenAI deal could reshape how you shop — eventually
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Amazon says its multibillion-dollar OpenAI partnership could power consumer products with customized AI models — but it isn't saying exactly how yet.
Why it matters: While the $50 billion deal is mainly about cloud compute and chips, it could also eventually reshape how millions of people search for products, compare options and decide what to buy.
Catch up quick: For years, Amazon has used AI internally — to forecast demand, run warehouses and power product recommendations.
- Friday, the companies said OpenAI's models will be customized to power Amazon's customer-facing products directly.
- Translation: Think ChatGPT-style answers instead of scrolling through endless product listings.
The intrigue: Amazon isn't saying how — or when — those changes will show up.
- The company declined to specify which applications it will prioritize, saying prioritization is "still TBD" and that OpenAI's technology will complement — not replace — its existing Nova models.
Reality check: Neil Saunders, managing director at GlobalData, tells Axios this is "mostly an AWS story," referring to Amazon's cloud business. He said the consumer angle lies in customization.
- "The interesting angle is that customized models may be developed for Amazon's own customer-facing applications," Saunders said. He expects the focus to be product discovery, summaries and personalization.
- Still, tailored models could give Amazon "something of an advantage over other players," he added, even as Walmart, Target and other retailers ramp up their own AI efforts.
Between the lines: Sucharita Kodali, a retail analyst at Forrester, questioned whether the partnership has a clear consumer payoff.
- "They seem to be saying there is a consumer impact, but I'm not sure that I see a clear way that will happen," she tells Axios. "It seems to be a deal where they buy one another's products, mainly on the AWS side though."
- Kodali pointed to several possible ways the companies could eventually work together — including featuring Amazon products on ChatGPT, replacing its AI shopping assistant Rufus with ChatGPT on Amazon's site or integrating the two systems.
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