In a letter to shareholders, Amazon CEO Andy Jassy shared how the company will move forward with artificial intelligence (AI) and how it will make the technology more accessible.
- Jassy reassured shareholders that despite “turbulent times,” the company’s “best days” were still ahead.
- Looking forward, Jassy emphasized the role of large language models and generative AI projects within the company, Axios reports.
- “Let’s just say that LLMs and Generative AI are going to be a big deal for customers, our shareholders, and Amazon,” Jassy says.
- Amazon Web Services announced new generative AI tools for its customers in a separate announcement.
Why it’s news
Like the rest of the tech industry, Amazon has struggled to adjust to the post-pandemic world after enjoying a significant boost during the pandemic. For example, Amazon Web Services grew 29% in 2022 but “faces short-term headwinds right now as companies are being more cautious in spending,” according to Jassy.
While riding a profit high after the pandemic, Amazon doubled its fulfillment center footprint. From 2019 to 2022, the consumer portion of the business increased by 77% in yearly revenue. Now, the company is looking to reduce costs, Axios reports.
Even while focusing on reducing unnecessary spending, Amazon is still looking to expand in other areas such as healthcare and satellite internet, divisions Jassy says could one day be as profitable as Amazon Web Services.
Jassy’s decision to focus shareholder attention on AI development could be one way Jassy is looking to boost confidence in the company. In the last 12 months, Amazon’s stock has fallen nearly 40%. When in a similar situation, Meta focused shareholder attention on AI while cutting costs. Since then, its shares have begun to trend upward, Axios reports.