Amazon’s AWS is reportedly facing backlash over the limits it places on the use of Anthropic’s artificial intelligence (AI) models. Customers told The Information that they’ve experienced increasing errors when trying to use Anthropic AI models through AWS.
Among the complaints are claims of “arbitrary” limits on AI usage. The report suggests that AWS either lacks the capacity to properly service customers, or that it’s reserving capacity for larger clients. It notes that some users are encountering error messages when using the AI models while others haven’t had an issue with hitting limits.
AWS responded to the allegations made by the publication, stating, “The Information’s suggestion that rate limits are a response to capacity constraints, or that Amazon Bedrock is not equipped to support customers’ needs, is false.” Instead AWS Senior PR Manager of Emerging Tech Kate Vorys said rate limits are designed to ensure “fair access” to models.
Amazon’s AI Investment
Reports of trouble for Amazon’s AI platform Bedrock are concerning to investors as the company has funneled significant funds into AI development. That includes a total of $8 billion in Anthropic to strengthen the relationship between the two companies.
It’s not just Amazon that has increased investors’ concerns with its AI investments. The sector has seen over $1 trillion in capital committed to it with hopes of massive payoffs. However, those returns haven’t manifested yet, raising concerns that the AI boom could turn into an AI bubble.
Is AMZN Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Amazon is Strong Buy, based on 45 Buy and one Hold ratings over the last three months. With that comes an average price target of $250.45, representing a potential 45.33% upside for AMZN stock.
