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Amazon to Boost Artificial Intelligence with Orbeus Buyout

According to a report by Bloomberg, e-commerce giant Amazon.com, Inc. AMZN acquired California-based startup Orbeus last year to enhance its artificial intelligence (AI) capabilities. The financial terms of the deal haven’t been disclosed yet.

Orbeus has carved its niche in image processing by using AI. Orbeus’ photo-recognition technology is based on ReKognition API. This technology allows other software developers to add facial or object recognition to their own products.

The use of artificial intelligence for image recognition has been gaining popularity in the tech sector as an increasing number of people are finding uses for it. Even other key players like Apple AAPL Alphabet’s GOOGL Google and Facebook FB have ramped up their technologies in the recent past to develop more solutions. However, each can have a different approach as to how to use the technology. For instance, Facebook has improved tagging with the technology and recently deployed it to improve its new feature Facebook Mentions. On the other hand, Google has used a similar feature for its Google Photos app.

In case of Amazon, the company is investing heavily in AI to automate warehouse operations, improve its delivery systems and add new products to its Amazon Web Services cloud offering.

The company might also use AI for machine-learning and robotics enhancement. These innovative technologies would allow the online retailer to improve in distinguishing different facial expressions.

We believe that Amazon’s sustained focus on expanding its business through strategic acquisitions and investments will drive growth in the long run.

However, stiff competition, currency fluctuations and stepped-up investments in international expansion and data centers could impact near-term results.

Amazon carries a Zacks Rank #3 (Hold).

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