You make a solid point about the growing importance of owning the means of production (i.e. data centers), especially for companies like Microsoft, Amazon, Google, and (to a growing extent) Xai. As AI models get more complex and costly, the ones with direct control over the infrastructure, data, and training resources are in an advantageous position.
Regarding AWS, it’s interesting to consider that they might be playing a longer game. Their focus on providing cloud services without rushing (to quickly) into LLM based AI products could indeed be a strategy to wait until the space matures. When they eventually roll out their own models, they’ll have a massive customer base already using their infrastructure, which could make the transition smoother and allow them to leverage their existing brand power.
The comparison to Amazon’s strategy in product development is also apt. They’ve built a history of entering established markets with a different approach—using their platform’s data and reach to outcompete incumbents. If they can apply the same model to AI, offering better integration with their cloud services and established ecosystems, they could present serious competition to existing players even if they’re a bit late to the party.
