Amazon (AMZN, Financials) is doubling down on artificial intelligence, and CEO Andy Jassy isn't mincing wordshe thinks companies that don't start using AI now could be left behind.
In a recent update to investors, Jassy said generative AI isn't just another tech trend. It's something that will completely change how people interact with products and servicesand companies that ignore it might struggle to keep up.
That's why Amazon is building more than 1,000 AI tools across its business. From personalized shopping and smarter search results to healthcare, streaming, and even writing code, the company is putting AI to work just about everywhere.
On the backend, Amazon Web Services is laying the foundation to support all of this. It's rolling out new chips, called Trainium2, that are designed to be more affordable and efficient than the expensive graphics chips most companies use today. Other toolslike SageMaker and Bedrockare there to help developers build and run AI models more easily.
Amazon's even working on its own in-house AI models, called Nova, and tools for creating intelligent virtual agents. And it hasn't forgotten about Alexa either. Jassy said the new Alexa+ is being trained to do more than just talkit's being built to take action in the real world.
All of this takes moneylots of it. But Jassy said these investments in data centers, chips, and software aren't just costs; they're the groundwork for Amazon's future. And as the company produces more of its own hardware, he expects some of those costsespecially for chipsto come down.
With other tech giants like Microsoft (MSFT, Financials), Google parent Alphabet (GOOGL, Financials), and Meta (META, Financials) also racing to roll out AI tools, Jassy made it clear: this is no time to sit on the sidelines.
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