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July 7, 2023 : In a comprehensive interview with CNBC, Amazon CEO Andy Jassy confidently dismissed the notion that Amazon has fallen behind in the artificial intelligence (AI) arena. Jassy addressed the increasing prevalence of chatbots in consumer products by companies like Microsoft and Google, likening the current state of AI to the “hype cycle” preceding the “substance cycle.”
While acknowledging the attention garnered by applications such as ChatGPT, Jassy emphasized that generative AI encompasses three significant layers, all of which hold immense importance. He stated that Amazon is committed to investing in AI across the company, recognizing its potential to enhance virtually every customer experience. Jassy highlighted Amazon Web Services (AWS) as a business poised to leverage the growing AI buzz long-term.
AWS recently introduced a generative AI service called Bedrock, which enables clients to develop their own chatbots and image-generation services using language models from Amazon and various startups. Additionally, AWS has developed its AI-specific chips named Inferentia and Trainium, designed to facilitate the efficient execution of large AI language models in the cloud. This puts AWS in direct competition with Nvidia, a dominant player in the AI chip market. Jassy expressed confidence that Amazon’s chips would offer significantly improved price performance compared to competitors.
Jassy pointed out that Amazon’s strategic initiatives, including Bedrock, custom chips, and services like CodeWhisperer, which assists developers by generating and suggesting code, give Amazon a distinct advantage in AI.
While Amazon has made some cost-cutting measures due to a slowdown in sales and an uncertain economic outlook, AI remains an area of significant investment for the company. Jassy’s strategic approach involves prioritizing AI as he streamlines operations by eliminating riskier ventures. Although Amazon recently underwent significant layoffs, paused the expansion of supermarket and convenience store chains, and discontinued certain services, the company remains firmly committed to solidifying its position in the ever-evolving AI landscape.
