Amazon CEO explains how the company will compete against Microsoft, Google in A.I. race

In an interview with CNBC, Jassy said that Amazon is not falling behind in AI, and that the company is investing in AI across the board. He specifically pointed to Amazon Web Services (AWS) as one business that can capitalize on the buzz around AI over the long term.

AWS recently unveiled a generative AI service called Bedrock, where clients can use language models from Amazon and other startups to develop their own chatbots and image-generation services. AWS has also developed its own AI-specific chips, called Inferentia and Trainium, which aim to make it easier for developers to run large AI language models in the cloud.

Jassy said that Amazon’s chips will have “much better price-performance than you’ll find anywhere else.” He also said that Amazon stands to have a real edge in AI through Bedrock, its custom chips, and other services like CodeWhisperer, which generates and suggests code for developers.

AI has shaped up to be a rare area for investment inside Amazon as Jassy has culled some of the company’s riskier bets and looked to cut costs due to slowing sales and a gloomy economic outlook. However, Jassy said that he is confident in Amazon’s AI strategy, and that the company is well-positioned to succeed in the long term.

Here are some key takeaways from the interview:

• Amazon is not falling behind in AI, and is investing in AI across the board.
• AWS is a key business for Amazon in the AI space, and will continue to be a focus for the company.
• Amazon is developing its own AI-specific chips, which will give it a competitive edge in the market.
• AI is a rare area for investment inside Amazon, but Jassy is confident in the company’s strategy.