- Amazon's CEO said in a letter to shareholders that AI may be the biggest change since the internet.
- Andy Jassy also raised the importance of AI security to protect customer data.
- The CEO also said that Amazon is “not done reducing the cost of service yet.”
Amazon CEO Andy Jassy released his annual letter to shareholders on Thursday. Yes, AI was the main theme.
In his letter, Jassy said generative AI “may be the biggest technology change since the cloud” and possibly “since the Internet.”
While moving existing infrastructure to the cloud requires a lot of migration work, Jassy said the AI revolution will be built entirely on cloud platforms from the beginning.
“I think we will all be surprised by the magnitude of the societal and business benefits that will emerge from the solutions that will become possible,” Jassy said in the letter.
But Jassy also cautioned shareholders not to underestimate the importance of security in AI.
“Our customers' AI models contain some of their most sensitive data,” Jassy says.
Jassy also said that Amazon is scheduled to launch its Project Kuiper Internet satellite later this year, and while there is still a long way to go, he is encouraged by its progress. This $10 billion project is expected to see him create a constellation of more than 3,200 satellites over the next six years.
Amazon's CEO said the company is focused on tackling AI with a three-tiered approach. That means building a foundational model, leveraging existing models, and leveraging pre-built Gen AI applications based on your needs and expertise.
Jassy believes that five things are core to the company's success and resilience: hiring builders who push boundaries, focusing on customer problems, and building foundational tools to accelerate innovation. He said it relies on key principles.
It also includes embracing better technology, regardless of where it comes from, and learning from mistakes.
Amazon's CEO also said the company continues to reevaluate ways to cut costs while delivering products to customers faster.
“If we look to 2024 (and beyond), Reducing service costs isn't finished yet“We have challenged every rigid belief in our fulfillment network and reevaluated every part of it. As a result, we have made several changes that we believe can further reduce costs while delivering to customers faster. I found territory,” Jassy wrote.
Amazon announced in early April that it would lay off hundreds of employees in its cloud division, AWS.
“Never in Amazon's history have we felt like we have so many opportunities to make our customers' lives better and easier,” Jassy concluded.
You can read Jassy's full letter to shareholders here.
