{"slug": "amazon-admits-its-ai-models-lag-behind-openai-and-anthropic-but-says-it-can-up", "title": "Amazon admits its AI models lag behind OpenAI and Anthropic, but says it can catch up", "summary": "Amazon AI chief Peter DeSantis admitted the company's AI models lag behind OpenAI and Anthropic, but expressed hope of catching up within a year. Amazon is investing $33 billion in Anthropic while building its own rival models, relying on custom Trainium chips and proprietary data to close the gap.", "body_md": "#### TL;DR\n\nAmazon’s AI chief Peter DeSantis admitted the company’s models “haven’t been at the very frontier” and said he hopes to catch up within a year. The candour comes as Amazon simultaneously invests $33 billion in Anthropic while building its own rival models.\n\nAmazon’s AI chief has said what the market long suspected. Peter DeSantis, the senior vice president who oversees the company’s AI models, custom chips, and quantum computing, [told CNBC](https://www.cnbc.com/2026/06/17/amazon-ai-frontier-openai-anthropic.html) that Amazon’s models “*haven’t been at the very frontier for the very largest, most demanding workloads.*”\n\nHe added that he hopes Amazon will be “*in the conversation about leading models in the coming year*.” The admission frames a catch-up effort that will rely on custom silicon, proprietary data, and the scale of Amazon’s cloud infrastructure.\n\n### The dual strategy\n\nAmazon runs two AI plays simultaneously. Bedrock, its model marketplace, lets cloud customers access models from OpenAI, Anthropic, Meta, and Mistral through a single service, generating revenue regardless of whose model wins.\n\nNova2, Amazon’s in-house model released in December, has attracted roughly 50,000 customers. It has not matched the capabilities of Anthropic’s Claude or OpenAI’s GPT-5.5 on the most demanding enterprise and research workloads, hence DeSantis’s candour.\n\n### The investor hedge\n\nAmazon has committed [up to $33 billion in Anthropic](https://thenextweb.com/news/amazon-anthropic-25-billion-investment), including a $25 billion deal signed in April that gave Anthropic access to up to five gigawatts of compute on Amazon’s Trainium chips. In return, Anthropic pledged to spend more than $100 billion on AWS over the next decade.\n\nThe arrangement means Amazon profits from Anthropic’s success through both its equity stake and the cloud revenue Anthropic generates. [Amazon’s Q1 2026 earnings were inflated by a $16.8 billion Anthropic-related gain](https://thenextweb.com/news/amazon-q1-2026-anthropic-aws-earnings), even as the company’s free cash flow fell 95%.\n\nThe competitive dynamics are pointed. [Google has pledged up to $40 billion in Anthropic](https://thenextweb.com/news/google-40-billion-anthropic-investment-gemini), making the AI lab the most courted startup in Silicon Valley.\n\n[Amazon CEO Andy Jassy also reportedly triggered the US government crackdown](https://thenextweb.com/news/amazon-jassy-triggered-anthropic-fable-mythos-crackdown) that shut down Anthropic’s Fable 5 and Mythos 5 last week. The episode raised questions about how Amazon balances its role as Anthropic’s largest investor with its position as a competitor building rival models.\n\n### The catch-up plan\n\nDeSantis’s path to closing the gap centres on custom AI chips, proprietary training data drawn from Amazon’s retail and logistics operations, and the engineering scale of a team that now spans frontier models, silicon design, and quantum research. Amazon’s Trainium chips already power most of Bedrock’s inference workloads.\n\nTrainium3, due later this year, promises four times the performance of its predecessor. [Jeff Bezos’s separate physical AI lab, Project Prometheus](https://thenextweb.com/news/bezos-project-prometheus-10-billion), is raising up to $10 billion, signalling that the company’s AI ambitions extend well beyond cloud computing.\n\nWhether custom chips and proprietary data can overcome a multi-year head start from labs that have spent billions training frontier models remains the open question. DeSantis offered a timeline, “*the coming year*,” but no benchmarks to measure it against.", "url": "https://wpnews.pro/news/amazon-admits-its-ai-models-lag-behind-openai-and-anthropic-but-says-it-can-up", "canonical_source": "https://thenextweb.com/news/amazon-ai-frontier-models-catch-up", "published_at": "2026-06-17 18:26:41+00:00", "updated_at": "2026-06-17 18:57:18.525786+00:00", "lang": "en", "topics": ["artificial-intelligence", "large-language-models", "ai-infrastructure", "ai-chips", "ai-startups"], "entities": ["Amazon", "OpenAI", "Anthropic", "Peter DeSantis", "Trainium", "Bedrock", "Nova2", "Google"], "alternates": {"html": "https://wpnews.pro/news/amazon-admits-its-ai-models-lag-behind-openai-and-anthropic-but-says-it-can-up", "markdown": "https://wpnews.pro/news/amazon-admits-its-ai-models-lag-behind-openai-and-anthropic-but-says-it-can-up.md", "text": "https://wpnews.pro/news/amazon-admits-its-ai-models-lag-behind-openai-and-anthropic-but-says-it-can-up.txt", "jsonld": "https://wpnews.pro/news/amazon-admits-its-ai-models-lag-behind-openai-and-anthropic-but-says-it-can-up.jsonld"}}