Amazon CEO Andy Jessi believes that companies should now invest in AI in the AI to receive full financial rewards in the future.
In that Annual letter to Amazon’s shareholders Published on Thursday, Jesi said “coffee capital” needs to maintain the pace of customer demand for AI innovation and AI products. He added that Amazon also needs to spend the money now if he hopes that it will see strong profit from this line over the years of investment.
Jesse’s comments have come out in February to spend more than his fourth quarter revenue call after announcing Amazon plans Billion 100 billion on capital costs in 2025. At that time, Jesus said that the “majority” of the money would be placed towards AWS AI’s capabilities.
Jess Jay wrote in his letter to his shareholders, “We believe that AI is a lifetime restoration in life that we know.” “Demand is the opposite that we have seen earlier, and our customers, shareholders and businesses will now be offered our investment aggressively well.”
Jesse said that AI’s biggest costs are currently data centers and chips, but he added that over time, this infrastructure will start to cost less.
Jesse wrote, “AWS, rapidly increases demand, more and more data centers, chips and hardware we need to get (and AI chips are far more expensive than CPU chips).” “We clearly spend this capital, though these assets have been useful for many years.”
For example, for example, Amazon’s own trainium 2 chips offered that prices would be reduced for AI’s infrastructure over time. He added that these chips offer 30 % -40 % better price than current GPU -driven computing examples that are commonly available today. Trainium 2 Was released at the end of 2024.
Jesse also said that the dynamics of AI price will change in the future as training costs for AI are reduced and instead of assessing the money, or in fact the AI model is served.
Jess Jay wrote, “We feel hasty to reduce the less expensive for consumers.” More price performance chips will help. But, in the next two years, the model will be more efficient with the improvement of model Oson, quick catches, computing infrastructure and model architecture. “
Jesse said in a shareholder letter that Amazon is currently making more than a thousand generative AI applications. He added that Amazon’s AI revenue is increasing from the “triple digits” year by year and represents the “annual income rate of multi -billion dollars.”
The Tech Crunch has reached Amazon for comment.