amazon Chief Executive Andy Jassy doesn’t think the retail and cloud computing giant should be left out of the AI race just yet.
In an interview with CNBC, Jassy questioned the notion that Amazon is lagging behind in AI because Microsoft and Google Adding chatbots to consumer products like search engines likens it to the “hype cycle” that preceded the “substance cycle.”
“I think most people focus on apps, you know, things like ChatGPT that raise everyone’s awareness, but I think generative AI has three macro layers,” Jassy said on “Closing Bell Overtime.” Jon Fortt told Jon Fortt in an interview published later Thursday. “I think they’re all very important.”
Jassy said Amazon intends to invest in artificial intelligence company-wide and that AI projects have the potential to improve “almost every customer experience.” But he singled out Amazon Web Services as a business that could take advantage of the AI boom long term.
Earlier this year, AWS launched a generative AI service called Bedrock that lets customers use language models from Amazon and other startups to develop their own chatbots and image-generating services.
AWS has also developed its own AI-specific chips, called Inferentia and Trainium, designed to make it easier for developers to run large AI language models in the cloud.it is against NvidiaIts powerful semiconductors dominate the artificial intelligence chip market.
Jassy said Amazon expects its chips to have “better value for money than anywhere else.”
Through Bedrock, Amazon’s custom chips, and other services like CodeWhisperer (which generates and suggests code for developers), Amazon has a real advantage in AI, Jassy said.
Artificial intelligence has become a rare area of investment within Amazon as sales slow and the economic outlook dims as Jassy has shed some of the company’s riskier bets and sought to cut costs. Amazon recently experienced the largest layoffs in history, cutting 27,000 jobs. It also paused the expansion of Fresh supermarkets and the Go convenience store chain, while ending virtual tour services, video-calling devices for children and Care telehealth services.