Topics

Latest

AI

Amazon

Article image

Image Credits:Michael Nagle/Bloomberg / Getty Images

Apps

Biotech & Health

Climate

Andy Jassy, chief executive officer of Amazon.com Inc.

Image Credits:Michael Nagle/Bloomberg / Getty Images

Cloud Computing

Commerce

Crypto

enterprisingness

EVs

Fintech

Fundraising

Gadgets

Gaming

Google

Government & Policy

Hardware

Instagram

layoff

Media & Entertainment

Meta

Microsoft

privateness

Robotics

Security

Social

distance

startup

TikTok

expatriation

speculation

More from TechCrunch

Events

Startup Battlefield

StrictlyVC

newssheet

Podcasts

TV

Partner Content

TechCrunch Brand Studio

Crunchboard

Contact Us

Amazon CEO Andy Jassy thinks companies should gift “ sharply ” in AI now to glean the full financial rewards in the future .

In hisannual letter to Amazon shareholderspublished Thursday , Jassy said “ square capital ” is required to keep up with the pace of AI innovation and customer demand for AI product . He added that Amazon , too , involve to spend this money now if it hop to see unassailable returns on its investment age down the line .

“ We continue to believe AI is a once - in - a - lifetime reinvention of everything we cognize , ” Jassy write in his shareholder alphabetic character . “ The need is unlike anything we ’ve seen before , and our customers , shareholders , and clientele will be well - served by our investment aggressively now . ”

Jassy say the bighearted AI expenses are currently datum center and chips , but he added that , over meter , this base will start to be less .

“ In AWS , the fast demand grows , the more data middle , chips , and hardware we take to pimp ( and AI cow chip are much more expensive than CPU chips ) , ” Jassy pen . “ We spend this Washington upfront , even though these asset are utilitarian for many years . ”

Jassy pop the question Amazon ’s own Trainium2 chip as an example that Leontyne Price will go down for AI base over time . He added that these silicon chip offer 30%-40 % good Leontyne Price - performance than the current GPU - powered computer science instances generally uncommitted today . Trainium2was loose in belated 2024 .

Join us at TechCrunch Sessions: AI

Exhibit at TechCrunch Sessions: AI

Jassy also said that AI price kinetics will transfer in the future as the training cost for AI come down and money is instead put toward inference , or in reality serving AI models .

“ We palpate strong urgency to make inference less expensive for customers , ” Jassy publish . “ More price - performant chips will help . But , illation will also get meaningfully more efficient in the next couple of years with improvements in exemplar distillate , command prompt caching , computing substructure , and model architecture . ”

Amazon is presently build more than 1,000 procreative AI coating , Jassy said in the shareholder varsity letter . He added that Amazon ’s AI revenue is growing at “ threefold - figure ” year - over - year percentage   and represent a “ multi - billion - dollar bill annual revenue streak rate . ”

Amazon declined to comment further .