Amazon (NASDAQ:AMZN) is reportedly working on a new artificial intelligence model featuring advanced reasoning capabilities, set to launch in June under the Nova brand, according to Business Insider.

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Reasoning AI models are gaining traction as they enable complex problem-solving. Amazon’s model is expected to take a “hybrid reasoning” approach, combining faster response times with extended, more sophisticated reasoning in a single system.

Amazon already backs Anthropic, the AI firm behind Claude 3.7 Sonnet, which it calls the first hybrid AI model. However, Amazon’s own model could directly compete with Anthropic, as well as Microsoft-backed OpenAI.

The news follows Amazon CEO Andy Jassy’s recent comments about the declining cost of AI inference, a shift he believes will benefit both customers and Amazon’s business.

This article first appeared on GuruFocus.