AWS is desperate to climb up the value stack. Compute and networking is a commodity (with fat margins at retail prices to be sure), and the second and third place providers are willing to make deep discounts to land big deals. That's not going to justify those future lofty valuations.

The problem is, for all it's talk over the last few years, AWS remains a complete non-player in the GenAI space, much less so than Azure. In my opinion the problem is exactly the same as for every other high-level service they've tried to launch. QuickSight, Lex, Polly, Cognito, CodeGuru, SageMaker, etc: they're not good. Nobody ever said "I really like QuickSight, I sure wish it had GenAI capabilities". So when the hastily-expanded QuickSight team(s) then goes on to release 42 different Q enabled SKUs, nobody cares. For various reasons, AWS is organizationally incapable of launching a non-infrastructure product that is simply great, as doing so would take attention to detail and deeply caring about things like UX which are anathema to Amazon.

On the positive side, GenAI model access will be commoditized and part of the basic undifferentiated cloud infra, and AWS will do fine there.