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Amazon has made significant strides in the AI sector by announcing four new AI chat models along with advancements in video and image generation. The introduction of these models comes after a substantial investment of $8 billion in Anthropic, suggesting a strong commitment to building proprietary technology. The new foundation models, named Nova, are set to be competitively priced at 75% lower than current market leaders, marking a significant shift in the market landscape. These developments place Amazon in direct competition with key players like NVIDIA and enhance their existing AWS cloud ecosystem.