In a recent interview on CNBC, Amazon CEO Andy Jassy outlined the company’s approach to artificial intelligence (AI) and its focus on developers and companies using its cloud. Amazon Web Services (AWS) is leveraging its computing infrastructure and proprietary chips to provide the tools needed to create, power, and train generative AI applications. The company offers services like Bedrock and Titan, which provide tools for deploying, customizing, and scaling AI applications. While other companies are focusing on consumer-facing applications, Amazon is concentrating on the developer community, which analysts say is a key area of business strength. AWS has also invested $100 million in a generative AI innovation center to offer free training for AI development. Amazon’s set of AI tools is available to help customers easily build gen AI-powered applications at a low cost. Jassy emphasized that AI use is not limited to its cloud unit, as all teams across the company are using AI to enhance the customer experience. Despite the attention on consumer services, analysts argue that Amazon is building strong capabilities to deliver in the next cycle of growth in the AI market. With its dominant market share in the cloud industry, AWS’ three layers of web services for AI are expected to become increasingly critical as companies integrate AI capabilities into their businesses. Amazon is also incorporating AI in e-commerce to support its ad business, leveraging its AI capabilities to deliver highly relevant search results without detracting from the customer experience. The company’s annual Prime Day event is expected to generate $8 billion in U.S. e-commerce sales alone, showcasing its dominance in both sales and advertising. While growth may not match previous years, Amazon’s focus on cutting costs and improving margins has positioned it ahead of its retail e-commerce competitors. The company’s investment in AI initiatives may require increased capital expenditures but is expected to deliver strong recurring revenues for its cloud unit over time.