Global Courant
Amazon CEO Andy Jassy believes that the retail and cloud computing giant should not be excluded from the artificial intelligence race just yet.
In an extensive interview with CNBC, Jassy challenged the idea that Amazon has fallen behind on AI Microsoft And Google add chatbots to consumer products like their search engines, and compare it to the “hype cycle” before the “dust cycle.”
“I think most people are focused on the applications, you know, things like ChatGPT have made everyone aware, but I think generative AI has three macro layers,” Jassy told Jon Fortt in an interview that aired on “Closing Bell Overtime” late Thursday. “I think they’re all very big and important.”
Jassy has said Amazon plans to invest in AI across the business, and that AI programs have the potential to improve “virtually every customer experience.” But he specifically pointed to Amazon Web Services as a company that could benefit from the buzz around AI in the long run.
Earlier this year, AWS unveiled a generative AI service called Bedrock, where customers can use language models from Amazon and other startups to develop their own chatbots and image generation services.
AWS has also developed its own AI-specific chips called Inferentia and Trainium, which aim to make it easier for developers to run large AI language models in the cloud. It’s against Nvidiawhose powerful semiconductors have dominated the AI chip market.
Amazon expects its chips to be “much better value for money than you’ll find anywhere else,” Jassy said.
Through Bedrock, Amazon’s custom chips, and other services like CodeWhisperer, which generates and proposes code for developers, Jassy said Amazon has a real edge in AI.
AI has become a rare investment area within Amazon as Jassy has honored some of the company’s riskier bets and tried to cut costs amid slowing sales and a bleak economic outlook. Amazon recently underwent the largest layoffs in its history, cutting 27,000 employees. It also halted the expansion of its Fresh supermarket and Go convenience store chains, while ending a virtual tour service, video calling device for children and its Care telehealth service.
Amazon’s CEO explains how the company will compete in the AI race
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