Inside Andy Jassy’s Plans for AI at Amazon

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In today’s news, we look at Amazon CEO Andy Jassy’s letter to shareholders, which details the tech giant’s plan for the era of generative AI.

What’s on deck:

But first, Amazon, AI and a letter.

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The big story

Amazon in the age of AI

The generative AI revolution is coming and Amazon wants to be part of it from the start.

Amazon CEO Andy Jassy identified technology as the company’s next big focus in its annual letter to shareholderswrites Ana Altchek of Business Insider.

Jassy described Generation AI as Amazon’s “next set of primitives,” which is corporate jargon for saying that Amazon wants companies to jump into Generation AI to create things using their tools.

This is a strategy that has worked well for Amazon in the past. AWS, Amazon’s public cloud business that Jassy helped create, has been incredibly profitable and has shaken up the way companies think about their technology strategy.

But there’s a new kid on the block. The AI ​​cloud includes Nvidia’s GPUs and large language models, which power the AI ​​services and tools that are all the rage today. Meanwhile, the cloud 1.0 sector, which AWS has long dominated, it’s not cool anymore.

Jassy’s letter details how Amazon plans to reposition itself at the forefront of this new era.

The three-tiered approach includes Amazon powering companies that build and train models (Anthropic, Snap), helping companies use those models with their data (Bridgewater Associates, Pfizer), and building AI applications themselves intended for customers.

There wasn’t just talk about AI in Jassy’s letter.

I asked our resident Amazon expert, Eugene Kim, on what marked him beyond the mentions of AI. He highlighted two points:

Lower cost of service. Jassy stressed that the company would continue to find less expensive ways to deliver items faster. It’s a nod to the threat felt by Amazon fast fashion retailer Shein. It also allows Amazon to increase its market share among customers looking for cheap, everyday items that might otherwise have been costly for Amazon to ship.

Prime Video is getting some love. Amazon’s streaming business has had a rocky road recently, with layoffs hitting the unit earlier this year. But Jassy’s hopes remain high. He said in the letter that he believed Prime Video could “be a significant and profitable business on its own.”

Exclusive content on the streamer has been a mixed bag. His last big bet is “To fall“, an adaptation of the popular video game set in a post-apocalyptic world. (Hmmm, what a new concept.) Meanwhile, Prime Video’s pursuit of sports remains a question mark.

3 things about the markets

1. These companies will be first in line when the IPO market finally opens up. Using Pitchbook data, BI identified 11 startups ready to go public this year. Among those ready for release: Databricks, Epic Games and Zocdoc. Here’s who else made the list.

2. Young bankers could be the latest victim of AI. The New York Times reported that banks are considering forgoing hiring new analysts using AI. manage part of their workload. But it’s not all bad news on the street, as Morgan Stanley bets AI can free up advisors’ time to be “more human”.

3. The best-case scenario for lower interest rates is going up in smoke. Wall Street strategists are readjusting their expectations for when the Fed will cut rates. Expert predictions include only one decrease this year and even an increase in rates.

3 things in technology

1. Adam Neumann talks about Flow, his secret billion-dollar startup. Neumann wants to make apartment life a utopia. But although Flow has been in the works for over a year, little is known about Flow. In an exclusive interview, Neumann spoke to BI about his new business.

2. Humane’s reviews of AI Pin are decidedly mixed. The pin, released yesterday, aspires to one day replace our smartphones. But early adopters said it wasn’t worth the $699 price tag, and it’s not that good yet.

3. Meet the rising stars of adtech. Digital advertising is facing a wave of new challenges, such as the death of third-party cookies. BI identified 33 emerging professionals who find solutions and develop new products.

3 things in business

1. Bon Appétit plans to cut about 25% of its unionized staff. In 2020, many of the brand’s best-known employees left the brand amid a racial reckoning. Now insiders are worried planned layoffs will jeopardize work the outlet has done to get back on track.

2. Hiring managers share CV clichés to avoid. Don’t just list your responsibilities, but instead highlight the impact you’ve had at work. And don’t use too many buzzwordslike saying you are “detail oriented.”

3. Big companies are quietly taking over your medical practice. Companies like hospital systems, insurers and private equity firms are gobbling up medical clinics, along with some doctors and industry experts. say it’s ruining health care.

In other news

What’s happening today

• Today’s winnings: JPMorgan Chase, Citigroup, Wells Fargo and others companies report.

• Coachella starts today.

The Insider Today team: Dan DeFrancesco, associate editor and presenter, in New York. Jordan Parker Erb, editor-in-chief, in New York. Hallam Bullock, editor, in London. George Glover, journalist, in London.