Amazon’s new cloud boss inherits a business under pressure to keep pace in AI

Adam Selipsky's departure from Amazon Web Services, announced last week, comes as the cloud unit faces heightened competition from companies rolling out artificial intelligence services.

The problem for Selipsky and the challenge for Garman is that Amazon has yet to emerge as a leader in generative AI despite throwing billions of dollars behind OpenAI competitor Anthropic and rolling out its own large language models . In the developer universe and among startups, the company is battling the perception that it's falling behind cloud rivals

Garman's selection for the top job "indicates Mr. Jassy and perhaps Mr. Bezos believe he's the person most likely to help Amazon close the lead and maybe establish a lead of their own," said Luria, who recommends buying Amazon shares.A source close to Amazon, who asked not to be named, described Garman to CNBC as a "wartime" leader and said change was needed to get more aggressive in AI.

Amazon Web Services ex-CEO Adam Selipsky speaks with Anthropic CEO and co-founder Dario Amodei during AWS re:Invent 2023, a conference hosted by Amazon Web Services, at The Venetian Las Vegas in Las Vegas on Nov. 28, 2023.Amazon's annual shareholder meeting, which took place virtually on Wednesday, arrived at a precarious time. It was held just days after Selipsky's departure and was overshadowed by AI-focused events at top tech companies.

The company has also boasted about the success of AWS' Trainium and Inferentia chips, with Anthropic using them to build and train its models, a process often performed on The week before his departure, Selipsky made some changes to the Q team. He tapped Dilip Kumar, a longtime Amazon executive who helped develop and launch its cashierless checkout technology, to oversee the "Amazon Q Business set of services," according to a memo sent to employees that was viewed by CNBC. Kumar will report to Swami Sivasubramanian, vice president of AI and data at AWS.

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Amazon's new cloud boss inherits a business under pressure to keep pace in AIAdam Selipsky’s three-year tenure at the helm of Amazon Web Services coincided with slowing growth and an increasingly competitive landscape in AI.
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