Amazon (AMZN) has mandated its engineers to cease the use of third-party AI coding tools, directing them to utilize its internal code-generation service, Kiro. This shift, detailed in a company memo, aims to enhance Kiro and streamline its adoption among developers. While existing external tools remain accessible, Amazon is focusing on internal solutions to maintain competitive parity with giants like Alphabet (GOOGL) and Microsoft (MSFT), both of which have advanced AI offerings.
Kiro, launched in July, enables engineers to generate code using plain language descriptions. Although Amazon has substantial investments in AI firms like Anthropic and OpenAI, it has recently categorized their tools, including Codex and Claude Code, as “Do Not Use” among its applications. As AMZN shares rose 2.53% to $226.28, analysts continue to hold a Strong Buy consensus on the stock, projecting an average price target of $294.97, indicating significant growth potential.
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