Andy Jassy sparked an 8 -minute defense from Amazon’s AI play book on the call of results

“I have two [questions] For you on AWS; They are a bit difficult, but I’ll throw them on you, “Nowak told Andy Jassy, CEO of Amazon.” There is a story of the financing person of Wall Street at the moment that Ws is late in Gen ia with concerns concerning the loss of peer sharing. What is your refutation to that and tell us about your most important focal points of the team and the team just to make sure that WS remains on the innovation knife compared to the peers of hyperscallers?

Nowak also insisted on Jassy on the reasons why it would not be just to assume that AWS income growth should not accelerate in the rear half of the year since all AWS generators generators and the generalized demand for companies of all sizes to collect this processing technology.

Jassy replied, stressing that these are the first stages of a technological transformation that will extend far in the future. While some of the best Frontier model suppliers use AWS to a certain extent, non -AWS non -AI customers who rush to build generative and agental AIs services using AWS are “early enough, and many of them are simply smaller in terms of use compared to some of these best heavy applications that I mentioned earlier”. Which is necessarily to be changed.

So, if you follow Jassy’s thought, because more and more companies determine what they want to build and how they want to build it, they will start to have different needs. For the largest manufacturers of models, such as open or anthropogenic AI, Jassy provides that their costs pass from a mixture between the formation of their models and the cost associated with “inference”, or the supporter intended for the customer where the model spits a prediction, a response or an action, mainly inference expenses. And Jassy maintains AWS is well positioned for this transition due to the AI fleas line at low cost.

“It’s about 30% and 40% of better prices than other GPU suppliers at the moment, and we are already working on our third version,” he said.

For others, who wish to use the model of another company to create their own generative AI applications, Jassy argued that Amazon Bedrock, which offers models from a wide selection of companies, has become an essential and “develops very considerably”.

Jassy continued on the thread of this subject of this subject, noting that companies are barely starting to think about deploying AI agents and that with its recent agent AI ads, AWS will be well positioned to capitalize.

Amazon CEO, and former AWS chief, added that AWS Cloud Leadership Position also provides a certain locking because “inference” of AI becomes only another component of the cloud service battery.

“”[P]Eople will really want to execute them [AI] Applications close to the place where their other applications take place, where their data is located, “said Jassy.” There are so much more applications and data running in AWS than everywhere else. “”

As for Nowak’s question on the possibility that the AWS growth rate is accelerating in the rear half of the year, Jassy would not respond directly, but stressed its optimism, partly from more AWS starting to deploy more AI products for sale which should continue to present itself in the coming quarters.

Earlier in the call, Jassy had defended the income rate of 18% AWS in light in Microsoft lighting annual growth of annual income of 34% for its Azure Cloud and Alphabet unit recently reporting a quarterly growth of 32% for Google Cloud. Azure generates approximately 2/3 the revenues that WS is made, while Google Cloud records less than half of the annual income from the Amazon Cloud giant.

“You look at the company, it is an annual company of $ 123 billion in terms of income and it is still early,” he said. “How often do you have an opportunity that represents $ 123 billion in annual operating rate where you say that it is still early? It is a very unusual opportunity that we have very optimistic.”