Artificial intelligence is here to stay.
At least that's what Amazon CEO Andy Jassy indicated in his annual letter to shareholders, published on Thursday.
Amazon's chief emphasized in the letter that the company is now going “all in” on generative AI, and that the technology is the company's next big fundamental building block, along with Marketplace, Prime, and Amazon Web Services (AWS).
In his shareholder letter, Jassy promised that he would look for ways to keep costs low, even as the company invests more in growth areas, such as artificial intelligence.
Jassy, who took over as CEO from Amazon founder Jeff Bezos in 2021, has since faced a number of challenges, including declining sales volume and growth at the company.
Since 2022, Amazon has eliminated more than 27,000 jobs, the largest reduction in the company's history.
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Despite these challenges, the company has invested heavily in artificial intelligence in recent years. Among other things, Amazon has invested heavily through AI startup Anthropic, with the company recently injecting $2.75 billion in new capital.
Amazon recently launched its chatbot “Rufus” for Amazon Marketplace and the Amazon “Q” platform, which writes code and debugs for AWS users.
“While we are building a large number of AI applications ourselves, the majority will eventually be built by other companies,” Jassy said. “However, what we are building at AWS is not just a compelling application or foundational model.”
He pointed out that Amazon's cloud service, AWS, will be a major player in the artificial intelligence boom.
“We are optimistic that much of our revolutionary AI technology will be built on top of AWS,” Jassy wrote in the letter. CNBC.
Meanwhile, Amazon CEO announced that renowned AI pioneer Andrew Ng, who previously led Google Brain, has been appointed to the company's board of directors.
Challenge the technology giant
Amazon is also competing with semiconductor giant Nvidia with the recently announced versions of its Amazon AI Trainium and Inferentia chips.
“Customers have asked us to challenge the price and performance limits of AI chips. Amazon's chips have greater performance potential than other early releases and alternatives on the market,” Jassy wrote.
Amazon stock rose sharply last year with an 81 percent gain in 2023, and is up another 22 percent so far this year.
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