Amazon CEO Andy Jassy has revealed the ecommerce giant is investing heavily in generative AI, claiming the technology will be a “big deal” for the business going forward.
Alongside generative AI, Jassy also revealed, in a letter to its shareholders, that the company is also investing heavily in Large Language Models (LLM).
He said: “Machine learning has been a technology with high promise for several decades, but it’s only been the last five to ten years that it’s started to be used more pervasively by companies.
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“This shift was driven by several factors, including access to higher volumes of computing capacity at lower prices than was ever available.”
He added: “We have been working on our own LLMs for a while now, believe it will transform and improve virtually every customer experience and will continue to invest substantially in these models across all of our consumer, seller, brand, and creator experiences.”
Jassy also reflected on “one of the harder macroeconomic years in recent memory” echoing the company’s decision to make some cost-cutting measure in the past few months.
“Over the last several months, we took a deep look across the company, business by business, invention by invention, and asked ourselves whether we had conviction about each initiative’s long-term potential to drive enough revenue, operating income, free cash flow, and return on invested capital,” he said.
However, he claims the company remains confident about its plans to lower costs.
The news comes as recently, the ecommerce giant revealed it will be shutting down its online Book Depository store.
The store, which has been running since 2007, will shut its doors on 26 April.
Image credit: Wikimedia
