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Amazon CEO Andy Jassy: A.I. represents one of the biggest transformations in our lifetime

Amazon Makes Bold AI and Chip Investments to Transform Customer Experience

  • Amazon does not have any intention or plan to spin out AWS from A.M. Maxan
  • Amazon believes that AI has the ability to transform virtually every customer experience, and is composed of three macro layers – compute, training and inference
  • Amazon has invested in their own chips that will have better price performance than NVIDIA chips.

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WHAT IS THE POSSIBILITY, THELIKELIHOOD YOU'RE GOING TO SPIN OUT AWS FROM A.M. MA XAN>> JON, WHEN WE'RE 80 AND WE GETA DRINK TOGETHER YOU'RE GOING TOBE ASKING ME THIS QUESTIONI DON'T HAVE A NEW ANSWER.WE DON'T HAVE ANY INTENTION ORPLAN TO DO SO.>> IN THE AI ERA WHY IN PARTICULARIS THERE A DIFFERENT KIND OFBENEFIT THAT YOU GET FROM HAVINGTHE eCOMMERCE BUSINESS AND THECLOUD BUSINESS IN THE SAMESTRUCTURE?I MEAN, I KNOW THE PROFITS FROM CLOUD, FROM AWS CERTAINLY HELPWHAT ABOUT THE ARTIFICIAL INTELLIGENCE ANGLE>> I DON'T THINK THE ARTIFICIAL INTELLIGENCE ANGLE CHANGES HOWYOU'RE STRUCTURED AS A COMPANYEVERY SINGLE BUSINESS UNITINSIDE OF AMAZON IS WORKING INTENSELY AND VERY BROADLY ON GENERATIVE AI.IN FACT, MANY WAYS SHARING WHAT WE'RE WORKING ON, WHAT WE'RELEARNING AND WAYS THAT WE CAN BEMORE EFFECTIVE FOR CUSTOMERS ANDMODELS IS VERY USEFUL ACROSSDIFFERENT DEPARTMENTS INSIDE OF AMAZON. >> SO LET'S TALK ABOUT AI BECAUSE I'M NOT GOING TO -- YES,I HAVEN'T EXACTLY BEEN QUIETABOUT IT BECAUSE YOU HAVE BEENTALKING ABOUT AI FOR A WHILE, BUT YOUR RIVALS, PARTICULARLY MICROSOFT, GOOGLE HAVE BEEN LOUDERSO ADAM IS NOW HEADING AWS POST YOU SAID THIS IS THE FIRST THREESTEPS, RIGHT, OF AN AI RACE.DON'T PAY TOO MUCH ATTENTION TO THATYOU GUYS WERE THE FIRST MOVERSIN THE CLOUD AND YOU'RE STILL AHEAD.YOU HAVE THE RISK BECAUSE YOU'RENOT THE FIRST MOVER HERE, ATLEAST IN THIS AI HYPE CYCLE,THAT YOU COULD GET BEHIND?>> HYPE CYCLE IS PRETTY DIFFERENT THAN SUBSTANCE CYCLESO, YOU KNOW, TO ME I -- I THINKADAM'S RIGHT, THAT WE'RE JUST A FEW STEPS INTO A MARATHON HEREYOU KNOW, TO ME, I SEEGENERATIVE AI AS ONE OF THE BIGGEST TECHNICAL TRANSFORMATIONS IN OURLIFETIMES, AND I THINK IT HAS THE ABILITY TO TRANSFORMVIRTUALLY EVERY CUSTOMEREXPERIENCE THAT WE KNOW.I THINK MOST PEOPLE ARE FOCUSED ON THE APPLICATIONS, YOU KNOW,THINGS LIKE CHATGPT BROUGHT EVERYBODY'S AWARENESS UP BUT ITHINK OF GENERATIVE AI AS HAVINGTHREE MACRO LAYERSI THINK THEY'RE ALL REALLY BIGAND IMPORTANT.AT THE BOTTOM LAYER IS THECOMPUTE THAT ALL OF THE MACHINE LEARNING TRAINING AND INFERENCE,WHICH ARE THE PREDICTIONS, THEMODELS THAT ARE GOING TO BE RUN ONWHAT MATTERS IN THE COMPUTE ISTHE CHIP IN THERE.TODAY THERE'S REALLY BEEN ONE CHIP PROVIDER, THE SUPPLY ISMORE SCARCE AND IT'S EXPENSIVE. >> YOU'RE TALKING ABOUT NVIDIA. >> IT'S WHY WE'VE INVESTED IN OUR TRAINING AND INFERENCE CHIPSWHICH WILL HAVE MUCH BETTER PRICE PERFORMANCE THAN YOU