Amazon Web Services (AMZN) is teaming up with Oracle (ORCL) in a new strategic partnership, launching Oracle Database@AWS. AWS CEO Matt Garman says the partnership was driven by the desire to offer something unique and valuable to customers.

One big focus for AWS has been AI. Garman tells Yahoo Finance that, "When the generative AI wave happened, we took a step back and said, 'How do customers really wanna get value out of that?' They want to really secure infrastructure. They have to worry about low cost. They want all of the best capabilities that are possible. And so then we went about and built an enterprise platform for customers to really drive AI into their applications. And what that means is it's not just one model. It's not just one feature. It's not just one particular application. It's a platform where you can use all of those capabilities." He says that by utilizing a platform approach, customers can use a specific large-language model or several large-language models in a way that works best for them.

On the perception that AWS may be perceived as lagging Microsoft (MSFT) in the AI race, Garman says, "At Amazon we have a saying that we're willing to be misunderstood for long periods of time. And for us, we felt that it was more important to actually build a baseline platform that customers could really go build real enterprise value into their applications on, as opposed to rushing in and quickly getting out chatbot technology... But that's not really the eventual place that the value is gonna come from this technology. It's not just chatbots."

Watch the video above to hear Garman explain why there's "a ton of potential" for AWS chips.

This post was written by Stephanie Mikulich.