Amazon CEO Andy Jassy has assured investors that the company is keeping pace with the latest advances in artificial intelligence (AI). In his letter to shareholders, Jassy said that Amazon is “investing heavily” in large language models (LLMs) and generative AI technology, which underpins AI chatbots like ChatGPT. Large language models are trained on vast amounts of data to generate responses to user prompts, and Amazon’s goal is to make machine learning chips less expensive so that small and large companies can afford to train and run their LLMs in production. To this end, Amazon has launched a new service called Bedrock, which makes foundation models from AI21 Labs, Anthropic, Stability AI, and Amazon accessible to clients via an API. Jassy believes that Bedrock “will change the game for people.” The remarks were part of Jassy’s second annual letter to shareholders since becoming CEO and reflect the pressure on tech companies to explain how they can tap into the rapidly evolving marketplace for AI products.

In addition, Jassy discussed AWS’s CodeWhisperer, another AI-powered tool that generates code suggestions in real-time, and expressed his optimism for Amazon’s future despite recent challenges. Amazon cut some 27,000 jobs to reduce costs and rethink certain free shipping options, but Jassy says that he is optimistic and energized by what lies ahead. According to a securities filing, Jassy’s pay package last year was valued at $1.3 million, and he did not receive any new stock awards in 2022. Jassy’s letter hints at Amazon’s desire to stay competitive in the evolving landscape of AI.