"Olympus" is reportedly twice the size of OpenAI's GPT-4, with two trillion parameters.
The AI model is intended for integration into Amazon's online store and Alexa smart speakers.
Amazon has invested $4 billion in AI startup Anthropic to bolster its AI capabilities.
The company aims to close the gap with competitors after delaying the launch of the AI model "Titan" last year.
Amazon is also working on a "conversational shopping agent" called "Project Nile" for its online store.
The company may potentially charge a subscription fee for access to Alexa's new AI features in the future.
Google's Waze app has introduced a new AI feature to alert drivers about crash-prone roads.
Waze utilizes historical crash data and real-time updates to provide advance warnings to drivers.