AWS CEO Adam Selipsky On Amazon’s $100 Million Investment Into Generative AI

Adam Selipsky, CEO of AWS, discusses Amazon's journey in machine learning, starting with personalization on the Amazon website and leading up to the launch of Sagemaker in 2017. He emphasizes AWS's position as a leader in cloud-based machine learning, with over 100,000 customers. Selipsky also talks about Amazon's development and implementation of large language models (LLMs) and generative AI, highlighting their use in retail website search and Alexa's voice responses. He mentions that Amazon has been working on LMS for years, predating the surge in popularity of models like ChatGPT. Selipsky outlines AWS's comprehensive approach to generative AI, including designing their own chips for training and inference, offering a range of options to customers, and the introduction of Amazon Bedrock, a managed service for generative AI.

Selipsky addresses the market's perception of AWS's position in generative AI, particularly in comparison to other tech giants like Google and Microsoft. He clarifies that AWS's $100 million investment into a new generative AI innovation center is just one part of their broader AI efforts. He emphasizes that Amazon has spent billions on AI over the years and that their investment is not limited to this single figure. Selipsky also introduces Amazon Bedrock, which aims to democratize AI by providing customers with a choice of models, including Amazon's own Titan models and those from other startups. He stresses the importance of choice and experimentation in the AI space and positions AWS as a leader in providing these options to customers.

The conversation shifts to how Amazon's generative AI innovation center will directly engage with customers, utilizing experts like data scientists and engineers to understand and solve their problems. Selipsky counters Wall Street's skepticism about Amazon's AI capabilities by highlighting the company's extensive experience and expertise in AI. He also mentions Amazon's launch of Codewhisperer, a coding companion that significantly reduces development time. Selipsky asserts that AWS's unique full-stack capabilities, including chip design and a choice-oriented service model, position it favorably compared to competitors like Microsoft and Google. He emphasizes that AWS is focused on meeting customer needs and building for the future, rather than immediate recognition or comparison with other companies.

Selipsky discusses the evolution of the cloud market and AWS's position as a leader. He addresses concerns about slowing growth in the cloud sector and the potential impact of generative AI on AWS's business. He argues that the cloud is essential for generative AI due to the significant computing and storage requirements, and that AWS's focus on security, operational excellence, and a broad range of capabilities will continue to attract customers. Selipsky also talks about the economic uncertainty affecting tech companies and how AWS is helping customers optimize costs. He expresses optimism about the future growth of cloud computing and AWS's role in it, despite predictions from analysts like Morgan Stanley about potential shifts in market share.

Selipsky elaborates on AWS's partnership with ARM, a key player in the chip industry, and how it has evolved over the years. He discusses the development of AWS's own chips, including the energy-efficient Graviton series, and the importance of these efforts in terms of sustainability and performance. Selipsky stresses the value of choice in the chip market and AWS's commitment to ensuring a consistent supply chain for its customers. He also addresses the potential impact of the chip shortage on AWS's capital expenditure plans and the company's strategy to meet the growing demand for generative AI compute capacity.