Amazon.Com Inc (NASDAQ:AMZN) is reportedly developing its artificial intelligence model with advanced reasoning capabilities.

The company looks to release its upcoming AI model in June as part of the Nova series of generative AI models, Business Insider reports.

An AI reasoning model will help solve complex problems with multiple solutions, ‘thinking' through the steps via chain-of-thought techniques.

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Amazon has reportedly adopted a hybrid reasoning approach, where the AI model can provide quick answers and more complex outputs after extended thinking.

Amazon-backed Anthropic recently announced it has developed a hybrid reasoning model, Claude 3.7 Sonnet. So far, it has invested around $8 billion in the Claude maker.

Amazon is also prioritizing making the Nova reasoning model competitive in pricing.

Amazon's AGI division, led by AI researcher Rohit Prasad, will build the new AI reasoning model.

GE Vernova will provide AWS with new offerings across various solutions to electrify and decarbonize data centers across North America, Europe, and Asia.

Recently, Amazon announced plans to invest about $100 billion in AI initiatives by 2025. CEO Andy Jassy said that most of the funds would go to AWS.

According to analysts, AWS continues to be a long-term profit engine. Of all the hyperscalers, Amazon is pivoting fastest toward the generative AI future because the current CEO came from the cloud business.

Price Action: AMZN stock is down 1.2% at $202.42 at the last check on Tuesday.

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