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What Is Amazon Bedrock?

By Adam Levy – Updated Aug 6, 2025 at 8:03 PM EST

Key Points

Amazon Bedrock allows developers to use established AI models for building apps.
Amazon's AI chips, Trainium and Inferentia, reduce costs and workloads.
Generative AI's market could reach $109 billion, benefiting cloud providers.

Amazon (AMZN +0.30%) Bedrock is a service for building generative AI applications on Amazon’s cloud computing platform. Generative AI applications like Chat-GPT from OpenAI and Stability AI’s Stable Diffusion take natural language prompts and use them to generate original text, images, music, video, and many other outputs. With Bedrock, Amazon is providing developers access to the tools and computing power needed to build their own generative AI applications.

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NASDAQ: AMZN

Amazon

Today's Change

(0.48%) $1.20

Current Price

$249.70

Key Data Points

Market Cap

$2.7T

Day's Range

$244.20 - $250.00

52wk Range

$165.28 - $258.60

Volume

42M

Avg Vol

52M

Gross Margin

50.29%

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The generative AI opportunity

The global generative AI market could reach $109 billion by 2023, according to analysis from Grand View Research. With the growing demand for generative AI applications for use in just about every industry, cloud computing providers have an opportunity to help businesses develop and scale their applications. About 10% to 20% of total revenue in generative AI goes to cloud providers, according to analysts at Andreessen Horowitz.

That’s a massive tailwind for an industry that’s seen growth rates decline in recent years. With cloud computing a major profit center for both Amazon and Microsoft, it makes sense that both are investing heavily in providing tools to developers for generative AI implementations.

As Andy Jassy put it in his 2022 letter to Amazon shareholders, “Let’s just say that LLMs and Generative AI are going to be a big deal for customers, our shareholders, and Amazon.”

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About the Author

Adam Levy is a contributing Motley Fool stock market analyst covering technology, consumer, and financial stocks and how policy, economic, and consumer trends shape personal finance, Social Security and retirement savings. Before The Motley Fool, Adam was a financial advisor at Edward Jones. He studied finance and electrical engineering at Carnegie Mellon University.

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Adam Levy has positions in Alphabet, Amazon, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.