Microsoft, Amazon Team Up To Launch Gluon Deep Learning API

The relationship between Microsoft Corporation (NASDAQ:MSFT) and Amazon.com Inc (NASDAQ:AMZN) is deepening in the artificial intelligence (AI) market.

In August, the cloud giants announced interaction between their virtual assistants — Amazon Alexa and Microsoft Cortana. Now, the companies have teamed up to launch a new deep learning library called Gluon. The open source project is available for free to developers.

Gluon’s python-based application programming interface (API) makes it easier for developers to build sophisticated machine learning models using simpler, concise codes.

Amazon’s AI framework — Apache (NYSE:APA) MXNet — currently supports Gluon. Further, the API will be supported by Microsoft’s Cognitive Toolkit (CNTK).

Microsoft-Amazon’s Collaboration to Thwart Google

Microsoft-Amazon’s bonhomie can be attributed to the increasing need to thwart Alphabet (NASDAQ:GOOGL) division, Google’s advances in the AI market.

Google’s TensorFlow AI framework has gained immense popularity among researchers compared with both Apache MXNet and Cognitive Toolkit.

Apart from significant investment on research & development, Google has been an aggressive acquirer in the AI market. Per latest data from CBINSIGHTS, the company bought 12 AI start-ups since 2012.

Google’s focus in developing AI-based technologies can be attributed to the robust growth potential of the market. According to market research firm IDC, worldwide revenues for cognitive and AI systems will surge 59.3% year over year to reach $12.5 billion in 2017.

Moreover, global spending on cognitive and AI solutions is anticipated at a CAGR of 54.4% through 2020, with revenues reaching more than $46 billion.

Microsoft Strengthening Position in the AI Market

Apart from Amazon, Microsoft has also collaborated with Facebook Inc (NASDAQ:FB) to boost its position in the AI market. The two created the Open Neural Network Exchange (ONNX) format, which is an open source project that provides “a shared model representation for interoperability and innovation in the AI framework ecosystem.”

Recently, a number of companies like Intel Corporation (NASDAQ:INTC), IBM (NYSE:IBM), AMD, Arm, Huawei and Qualcomm (NASDAQ:QCOM) announced their support for ONNX.

Microsoft also announced the release of preview support for ONNX in Cognitive Toolkit. Moreover, the company’s FPGA-based deep learning platform for accelerating real-time AI — Project Brainwave — will now support ONNX format.

The company has also added new services and tools like Azure Machine Learning and Visual Studio Code Tools to the Microsoft AI platform.

Further, the company’s corporate venture arm — Microsoft ventures along with Madrona Venture Group, Notion Capital and Vertex Ventures Israel, recently announced a global competition, Innovate.AI. The competition aims at uncovering emerging start-ups working on the advancement of AI.

Currently, Microsoft has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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