Amazon CEO Andy Jassy: AI still in 'Hype Cycle', $AMZN has edge

In a recent interview with CNBC, Amazon CEO Andy Jassy confidently refuted the belief that Amazon has fallen behind industry giants Microsoft and Google in the AI race.

Jassy emphasized that Amazon possesses a distinct advantage in artificial intelligence thanks to its custom chips and developer-centric services tailored specifically for large language models.

Amazon CEO Says AI Is Still In Its ‘Hype Cycle’

Jassy drew attention to the current hype surrounding generative AI chatbots, comparing it to the familiar pattern of the “hype cycle” that often precedes the “substance cycle.”

This analogy suggests that the AI industry is experiencing intense excitement and anticipation, much like previous technological advancements before they matured into practical and impactful solutions.

AI Will Improve ‘Virtually Every Customer Experience’ at Amazon

In the CNBC interview, Jassy emphasized Amazon’s commitment to investing in AI across the company, stating that AI has the potential to improve “virtually every customer experience.”

He specifically highlighted Amazon Web Services (AWS) as a business that can capitalize on the current AI buzz over the long term.

Regarding AWS, Jassy mentioned the company’s generative AI service, Bedrock, which allows clients to develop their own chatbots and image-generation services using language models from Amazon and other startups.

Amazon’s Custom Chips: Inferentia & Trainium

One of Amazon’s key strengths lies in its dedication to providing developers with the necessary tools and infrastructure to leverage AI effectively.

The company has invested heavily in building custom chips, which offer superior performance and efficiency for AI workloads.

Amazon’s development of custom AI chips, Inferentia and Trainium, enables developers to harness the power of AI and create cutting-edge applications and services.

Jassy confidently stated, “We think our chips will have much better price performance than you’ll find anywhere else.”

He also emphasized Amazon’s advantage in AI, mentioning services like CodeWhisperer, which generates and suggests code for developers. Jassy believes that through Bedrock, custom chips, and CodeWhisperer, Amazon stands to have a significant edge in the AI domain.

Is Amazon Really Behind In The AI Race?

While Microsoft and Google have made significant strides in the AI domain, Jassy’s comments highlight Amazon’s unique approach to AI development. By prioritizing the needs of developers and equipping them with powerful tools and services, Amazon aims to foster innovation and accelerate the adoption of AI across industries.

As the AI landscape continues to evolve, it is important to differentiate between short-lived hype and the emergence of substantial breakthroughs. Amazon’s focus on custom chips and developer-centric services positions the company as a formidable player in the AI arena, ready to capitalize on the forthcoming “substance cycle” and drive the future of artificial intelligence.