Andy Jassy, the CEO of Amazon, firmly believes that the company should not be dismissed in the artificial intelligence race.
In a comprehensive interview with CNBC, Jassy refuted the notion that Amazon has lagged behind in AI, particularly as Microsoft and Google integrate chatbots into their consumer products, such as search engines. Jassy likened this to a “hype cycle” preceding the anticipated “substance cycle.”
In an interview with Jon Fortt that aired on “Closing Bell Overtime” late Thursday, Jassy said, “I think most people are focused on the applications, you know, things like ChatGPT brought everybody’s awareness up, but I think of generative AI as having three macro layers. I think they’re all really big and important.”
However, he explicitly mentioned Amazon Web Services as one area that can benefit from the buzz around AI in the long run. Jassy stated that Amazon aims to invest in AI across the company and that AI programs have the ability to improve “virtually every customer experience.”
AWS introduced the Bedrock generative AI service earlier this year. Customers may use language models from Amazon and other firms to create custom chatbots and image-generating applications. In order to make it simpler for developers to run huge AI language models in the cloud, AWS has also created its own AI-specific processors named Inferentia and Trainium. It will compete with Nvidia, a leading manufacturer of AI chips with potent semiconductors.
According to Jassy, Amazon anticipates its chips will offer “much better price-performance than you’ll find anywhere else.”
Jassy also claimed that Amazon has a significant advantage in AI thanks to Bedrock, its own proprietary processors, and other services like CodeWhisperer, which produces and suggests code for engineers.
Given Jassy’s removal of some of the company’s riskier bets and efforts to reduce expenses as a result of sluggish sales and a bleak economic outlook, AI has emerged as a unique area for investment within Amazon. Recent Amazon layoffs, which resulted in 27,000 job losses, were the largest in company history. In addition, it has halted the growth of its Fresh convenience store and Go supermarket chains. It has also discontinued its Care telehealth service as well as its virtual tours and kid-friendly video chatting devices.
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