Andy Jassy unleashed an 8-minute defense of Amazon’s AI playbook on earnings call

“I have two [questions] You are on AWS. Novak, CEO of Amazon, CEO of Amazon, CEO of Amazon Andy Jaci: Their outstanding peers?

Nowak also pressed Jassy about the reason why there is no justice that we assume that the growth of AWS revenues should not accelerate in the back half of the year given all AI’s AWS offers from AWS and wide demand from companies of all sizes to make money in this transformational technology.

Jassi was certainly answered that these are the early stages of the technological transformation that extends to the future. While some of the best FRONTIER models use AWS in some capabilities, AWS customers who are not hasty to build the AI obstetric and agents using AWS “very early, and many of them are smaller in terms of use for some of those heavy applications that I mentioned earlier.” This must change.

So, if you follow Jassy thinking, where more institutions discover what they want to build and how they want to build it, they will start getting different needs. For the largest models makers, such as AI Open or Anthropic, Jassy expects their costs that have turned from a combination of training their models and the cost associated with “inference” or the part that faces the customer where the model spitters forecasting, answering or working, at the expenses of inference mostly. Jassy maintains AWS well for this transition due to a low -cost AI chips training.

He said: “It has been 30 % better prices and 40 % of the other GPU providers there at the moment, and we are already working on our third edition.”

For others, who want to use another company model to create their artificial intelligence applications, Jassy argued that Amazon Bedrock, which offers models of a wide range of companies, has become a destination to “grow very significantly”.

Jassy continued in the thread of this controversy, by noting that companies have just started thinking about publishing artificial intelligence agents and that, through the ads of AI modern agent, AWS will be placed in a good position to benefit from.

The CEO of Amazon, and former AWS president, added that the AWS cloud center also provides some lock as the male intelligence “inference” becomes just another component in the stack of the company’s cloud services.

“[P]EOPLE will actually want to run these people [AI] “There are applications close to the place of operation of their other applications, where there are their data. There are many applications and data that work in AWS more than anywhere else,” Jaci said.

Regarding the Nowak question about the possibility of the AWS growth rate accelerated in the back half of the year, Jassy will not directly answer but stressed its optimism, partly from AWS customers who started spreading more artificial intelligence products on a large scale that should continue in the tour in the coming sides.

Earlier in the call, Jassy defended the AWS income growth rate by 18 % in Microsoft’s light on 34 % annual revenue growth for its Azure Cloud unit and recently answered 32 % annual growth for Google Cloud. AZURE generates about 2/3 revenues made by AWS, while Google Cloud records less than half of the annual revenues of Amazon Cloud Beheemoth.

He said: “You are looking at work, it is an annual price company of $ 123 billion and is still early.” “How many times have a chance of $ 123 billion in the annual revenue operating rate as it says it’s still early? It is a very unusual chance we have very difficult.”