Amazon is more interested in developing AI and “cloud” rather than “warehouse” –

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Jakarta ( – Amazon is reportedly more interested in development artificial intelligence (AI) or artificial intelligence, which grew quite sharply after the pandemic by doubling investment in the sector while reducing the allocation of funds for warehousing and logistics infrastructure.

“In fact, we’ve spent less investment year-over-year on lower estimates for our storage and transportation businesses,” said Amazon Chief Financial Officer Brian Olsavsky, as quoted from Business Insider, Friday.

Olsavsky explained that it has added more dollars to the big models of language development and AI. Because of that, he continued, Amazon created more space from the warehousing and transportation sector to be transferred to Amazon Web Service or AWS.

AWS itself does provide AI and machine learning services to category customers unicornsincluding Stability AI and Hugging Face services.

Referring to the company’s 2022 annual report, it is known that the company owned by Jeff Bezos spent around US $ 58.3 billion or the equivalent of Rp. 851 trillion in capital expenditures last year and this amount shows the company’s desire to develop technology infrastructure.

Meanwhile, Amazon CEO Andy Jassy agreed that his party did have a big commitment to developing AI and thought that it was a giant e-commerce it will be one of the few companies to prioritize the massive development of language models that are the technology behind generative AI tools like chatbots.

“If you look at the leading big language model today, it takes years and billions of dollars to build. So there are very few companies willing to invest in that time and money, and Amazon is one of them.” he explained.

Jassy added that he believes generative AI tools will be one of the most exciting things to develop and Amazon aspires to develop personal assistant the best in the world.

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Translator: Ahmad Faisal Adnan
Editor: Ida Nurcahyani


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