Sylvia Jablonski, the Chief Executive Officer and Chief Investment Officer of Defiance ETFs, responds to reports indicating that Amazon and Google are revising their profit expectations related to conceptual artificial intelligence.
In his recent annual letter to shareholders, Amazon’s CEO Andy Jassy outlined the e-commerce behemoth’s strategy for advancing artificial intelligence (AI) technologies.
Jassy emphasized Amazon’s goal to empower engineers both within and outside the company in developing innovative products and services for consumers. He highlighted the importance of continuous improvement and described builders as individuals who enjoy the process of creation. According to Jassy, providing builders with the necessary tools for enhancing customer experiences is paramount. He stressed the significance of creating fundamental services that can be combined in various ways to drive innovation.
Amazon and AWS have adopted this approach in their AI endeavors, particularly in the realm of generative AI (GenAI).
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Andy Jassy, the CEO of Amazon, showcased the company’s robust AI capabilities in his communication to shareholders. (Kevin Winter/Getty Images)
Jassy acknowledged the public’s focus on GenAI software, particularly with the recent launch of ChatGPT in 2022. However, he underscored that there are three distinct levels within the GenAI framework, each representing significant investments and opportunities for growth.
The foundational layer targets developers and businesses seeking to create base models (referred to as ‘FMs’). Jassy elaborated on the essential components, such as hardware and software, that facilitate model creation and predictions.
In response to customer feedback urging Amazon to enhance the price-performance ratio of AI chips, akin to the success achieved with Gravitron CPU cards, Jassy introduced custom AI training chips named Trainium and inference chips called Inferentia.
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The Amazon Q AI application supports organizations in data analysis. (Jaap Arriens/NurPhoto via Getty Images)
Jassy highlighted Anthropic’s collaboration to leverage Trainium and Inferentia chips for model creation and training, now in their improved second generation with enhanced performance and cost-effectiveness.
The intermediary layer caters to users interested in utilizing an active FM, customizing it with personal data, and leveraging cloud infrastructure to develop GenAI software as a managed service.
At the top layer of the stack lies the application layer, where Amazon is actively developing a range of GenAI applications across various consumer businesses.
Understanding Artificial Intelligence (AI)
Amazon introduced Rufus, an AI-powered shopping assistant, last year. (Sheldon Cooper/SOPA Images/LightRocket via Getty Images)
Jassy elaborated on the diverse GenAI applications, including Rufus, an AI shopping assistant, an advanced version of Alexa, and advertising tools that enable content creation using natural language. Additionally, productivity apps for customers and sellers are in the pipeline.
Moreover, Amazon is crafting coding companions for AWS, with a notable example being Amazon Q, an AI expert capable of writing, debugging, testing, and executing code while offering transformative capabilities and data querying functionalities across multiple repositories.
Jassy expressed confidence that AWS’s AI initiatives, spanning all layers of the stack, will drive the next phase of AI evolution, both internally and externally. These services, built on foundational primitives, empower developers to revolutionize customer experiences and pave the way for groundbreaking innovations.
In conclusion, Jassy envisions AWS playing a pivotal role in shaping the future of AI and revolutionizing customer interactions across diverse industries.
