Amazon Invests Significantly in Productive AI Technology

Amazon wants investors to know that it won't be left behind in the latest AI race. In a letter to shareholders, Amazon CEO Andy Jassy said the company is "investing heavily" in large language models (LLMs) and generative AI, the same technology that underpins ChatGPT and other similar AI chatbots.

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"Change the game for people."

Jassy's statements since taking over as CEO point to the pressure many tech companies are feeling to explain how they can capitalize on the rapidly evolving market for AI products. Since ChatGPT's public launch in late November, Google, Facebook and Microsoft have all spoken of their increased focus on generative AI technology that can create compelling essays, stories and visuals in response to user requests.

According to Jassy, Amazon's goal is to offer machine learning chips that cost less so that "small and large companies can afford to train and run their LLMs in production". Large language models are trained on vast troves of data to create responses to user prompts.

Amazon, with this in mind, has introduced a new service called Bedrock. It basically makes basic models (large models pre-trained on very large amounts of data) from AI21 Labs, Anthropic, Stability AI and Amazon accessible to customers through an API, Amazon said in a blog post. Jassy told CNBC that he thinks Bedrock will "change the game for people."