In an interview with CNBC, Amazon CEO Andy Jassy discussed the transformative potential of generative AI and emphasised Amazon's focus on the 'substance cycle' rather than the 'hype cycle' surrounding AI chatbots and generative AI tools.

Jassy outlined three critical layers: robust computing capabilities, foundational models, and the application layer. To drive this vision, Amazon is developing high-performance chips, including Trainium for training machine learning models and Inferentia for efficient inference. These chips boast better price-performance ratios compared to competitors, catering to the immense computing power demands of future AI applications. However, the cost and complexity of foundational models remain barriers, prompting Amazon to introduce Bedrock, where clients can use language models from Amazon and other startups to develop their own chatbots and image-generation services. Bedrock aspires to become a go-to platform for companies seeking to develop their own generative AI applications. Jassy also revealed that Amazon is working on a generative AI tool to assist developers in writing code and finding the right applications for the technology.