Market Commentary

Amazon Is Secretly Developing a ChatGPT Competitor Named “Metis”

Namra Pervaiz
27 Jun 2024 · 2 minutes read Inc (AMZN:US) is discreetly developing an AI chatbot named "Metis," aiming to rival OpenAI's ChatGPT. This confidential project, revealed by Business Insider, is designed to function through a web browser, similar to other AI assistants, according to insiders and an internal document.

Metis, powered by Amazon's internal AI model "Olympus," offers text- and image-based responses in a conversational manner. It can provide source links, suggest follow-up queries, and generate images. Amazon's strategy involves using a technique called retrieval-augmented generation (RAG) to deliver more current responses, such as the latest stock prices, surpassing some existing chatbots.

Additionally, Metis is expected to function as an AI agent capable of automating complex tasks like creating vacation itineraries and booking flights. This places Amazon in direct competition with established AI assistants from Microsoft Corp (MSFT:US) and Alphabet Inc (GOOG:US), as well as other startups like Anthropic.

Despite Amazon's extensive AI initiatives, it has struggled to keep pace with rivals. Its Titan model is viewed as less powerful, and the Amazon Q chatbot received mixed reviews. Challenges extend to Amazon's AI chips, Trainium and Inferentia, which face low demand and performance issues. In an effort to expedite its AI model training, Amazon recently directed employees to scrape GitHub's open-source data.

CEO Andy Jassy deeply involved in Metis, indicated that AI projects could generate substantial revenue for Amazon. The project, overseen by the AGI team led by Rohit Prasad and Vishal Sharma, is currently undergoing internal testing. A tentative launch is set for September, coinciding with Amazon's Alexa event, although doubts about the project's timing persist.

In related developments, several U.S. politicians have been trading in U.S. giant stocks. Notably, Congressman Josh Gottheimer has made multiple trades in Microsoft and Alphabet stocks. Capitol Trades' records show Bill Keating purchased AMZN stocks worth $15,000 to $50,000 in May 2024, and Ro Khanna bought Alphabet stocks worth between $1,000 and $15,000 later that month.