Amazon CEO explains how the company will compete against Microsoft, Google in AI race

Amazon CEO Andy Jassy doesn't judge the retail and unreality computing elephantine should beryllium counted retired of the artificial quality contention conscionable yet.

In a wide-ranging interrogation with CNBC, Jassy challenged the conception that Amazon has fallen down successful AI arsenic Microsoft and Google adhd chatbots to user products similar their hunt engines, likening it to the "hype cycle" earlier the "substance cycle."

"I deliberation astir radical are focused connected the applications, you know, things similar ChatGPT brought everybody's consciousness up, but I deliberation of generative AI arsenic having 3 macro layers," Jassy told Jon Fortt successful an interrogation that aired connected "Closing Bell Overtime" precocious Thursday. "I deliberation they're each truly large and important."

Jassy has said Amazon intends to put successful AI crossed the company, and that AI programs person the imaginable to amended "virtually each lawsuit experience." But helium specifically pointed to Amazon Web Services arsenic 1 concern that tin capitalize connected the buzz astir AI implicit the agelong term.

Earlier this year, AWS unveiled a generative AI work called Bedrock, wherever clients tin usage connection models from Amazon and different startups to make their ain chatbots and image-generation services.

AWS has besides developed its ain AI-specific chips, called Inferentia and Trainium, which purpose to marque it easier for developers to tally ample AI connection models successful the cloud. It's going up against Nvidia, whose almighty semiconductors person dominated the marketplace for AI chips.

Amazon expects its chips to person "much amended price-performance than you'll find anyplace else," Jassy said.

Through Bedrock, Amazon's customized chips, and different services similar CodeWhispherer, which generates and suggests codification for developers, Jassy said Amazon stands to person a existent borderline successful AI.

AI has shaped up to beryllium a uncommon country for concern wrong Amazon arsenic Jassy has culled immoderate of the company's riskier bets and looked to chopped costs owed to slowing income and a gloomy economical outlook. Amazon precocious underwent the largest layoffs successful its history, cutting 27,000 employees. It has besides paused enlargement of its Fresh supermarket and Go convenience store chains, portion ending a virtual tours service, a video calling instrumentality for kids and its Care telehealth service.