The newly launched AI chatbot from Amazon.com Inc (NASDAQ:AMZN), dubbed Q, has been under fire from users and company insiders alike for producing incorrect outputs, colloquially known as ‘hallucinations.’

An Amazon spokesperson defended the launch strategy and emphasized that Q uses multiple AI models via Amazon Bedrock. They also noted the considerable positive feedback received from customers during the preview period.

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The deployment of the Claude AI model aligns with Amazon’s investment strategy, with up to $4 billion poured into the AI startup Anthropic. However, some insiders suggest upgrading to a superior version of Claude could boost Q’s capabilities.

Despite concerns raised by Q’s hallucinations, Amazon is beefing up its human evaluation process, also known as “human in the loop.” A dedicated task force is working on addressing these problems.

The efforts to enhance Q, however, are hampered by internal competition for AWS’s computing capabilities, especially with increased demand for GPUs from NVIDIA Corp (NASDAQ:NVDA) and other suppliers.

Q’s launch is a part of Amazon’s 3-stack AI strategy, which includes user apps built on AI language models, the large language models themselves, and the computing power and chips.

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