The company is “deeply investing” in each of its three GenAI stack layers: AI chips and model-building software; applications for its consumer businesses, such as Alexa and Rufus, a shopping assistant; and Amazon Bedrock, where developers can build AI applications using foundational models, said Andy Jassy in his annual letter to shareholders. (The Logic)

Talking point: “Generative AI may be the largest technology transformation since the cloud (which itself, is still in the early stages), and perhaps since the Internet,” he said. The company recently added US$2.75 billion to its backing of San Francisco-based AI startup Anthropic as Big Tech companies battle for the lead in the AI race. Amazon announced separately that Andrew Ng, a computer scientist and AI expert who co-founded Google Brain, would join its board. Jassy’s letter also expressed optimism about the company’s Prime Video service, suggesting it could be a profitable venture, and outlined plans to continue cutting costs in Amazon’s fulfilment network.