CHICAGO - GE HealthCare (NASDAQ: NASDAQ:GEHC) has announced a strategic partnership with Amazon Web Services, Inc. (AWS) (NASDAQ: AMZN) to develop and deploy advanced artificial intelligence (AI) applications and foundation models aimed at enhancing medical diagnostics and patient care. As the selected strategic cloud provider, AWS will support GE HealthCare in creating AI-driven tools to streamline clinical operations and improve the delivery of healthcare services.
The collaboration will see GE HealthCare leveraging AWS’s machine learning and generative AI technologies, including Amazon Bedrock and Amazon SageMaker, to build proprietary AI applications tailored for healthcare. These applications are expected to reduce development time from years to months, facilitating the rapid delivery of innovative healthcare solutions.
GE HealthCare intends to use the AWS cloud infrastructure to create a more personalized, efficient, and intelligent care delivery system. The company's internal developers plan to utilize Amazon Q Developer, a generative AI-powered assistant, to expedite software development. Additionally, Amazon Q Business will be used to explore the intersection of clinical and operational data, aiming to alleviate the cognitive load on physicians and enable personalized care.
This initiative is set to address the challenge of unstructured data in healthcare, which comprises approximately 30% of the world's data generation, yet 97% remains largely untapped. GE HealthCare's multi-modal foundation models are designed to analyze and interpret this diverse data, providing adaptable insights across various diseases and tasks.
The partnership also involves modernizing GE HealthCare's application suite with custom foundation models developed on Amazon SageMaker, enhancing the company’s equipment and software solutions. These generative AI-powered applications will integrate with AWS HealthLake and AWS HealthImaging, allowing for the secure and swift analysis of various types of patient data.
GE HealthCare's commitment to AI innovation is evidenced by its consecutive recognition by the U.S. Food and Drug Administration (FDA) for AI-enabled device authorizations. The company's ongoing research includes an advanced ultrasound image segmentation tool, demonstrating the potential of foundation model technology in medical applications.
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InvestingPro Insights
Amazon Web Services (AWS), a subsidiary of Amazon (NASDAQ: AMZN), stands as a prominent player in the Broadline Retail industry and is now bringing its technological prowess to the healthcare sector through a strategic partnership with GE HealthCare. With a market capitalization of $1.88 trillion and a P/E ratio of 49.79, Amazon demonstrates significant financial stability and market confidence, which is crucial for long-term partnerships and innovations in technology-intensive sectors like healthcare.
InvestingPro Data indicates Amazon's revenue growth over the last twelve months as of Q1 2024 stands at 12.54%, highlighting the company's capacity to expand its operations and invest in new ventures such as the collaboration with GE HealthCare. Moreover, the company's ability to generate a gross profit margin of 47.59% during the same period showcases its efficiency in managing costs while scaling its business.
An InvestingPro Tip worth noting is that Amazon's cash flows can sufficiently cover interest payments, which is an essential factor for companies engaging in strategic partnerships and investments in research and development. This financial stability is a key aspect of Amazon's ability to support GE HealthCare's AI-driven healthcare initiatives.
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