Amazon CEO Andy Jassy says he has a secret weapon in the AI wars

• Amazon CEO Andy Jassy said AWS gives nan institution a limb up successful nan AI race.
• Jassy said AWS has shown that Amazon tin grip nan logistics for scaling AI.
• Amazon's Q3 net hit expectations, pinch its banal rising 6% aft hours.

Amazon CEO Andy Jassy connected Thursday explained why he thinks nan institution is well-positioned to excel successful AI: Amazon Web Services.

Jassy talked up nan cloud-computing portion connected Amazon's third-quarter net call, defending nan company's fierce investments successful AI. Amazon hit Wall Street's third-quarter expectations connected gross and net per share, pinch nan banal rising 6% successful after-hours trading.

With Amazon expecting astir $75 cardinal successful superior expenditures this year, astir of which will spell toward AWS, Jassy told analysts that nan institution has an separator successful AI because of its acquisition building a immense cloud-computing business.

"I deliberation 1 of nan least-understood parts astir AWS complete clip is that it is simply a monolithic logistics challenge," Jassy said, explaining that nan institution has learned really to successfully scheme for capacity astatine its information centers worldwide.

Jassy said managing nan data centers to debar outages while ensuring businesslike assets usage is challenging, but that Amazon has developed blase models to expect really overmuch capacity is needed.

"I deliberation that 1 of nan differences — if you were capable to get wrong of nan economics of nan different types of providers present — is really good they negociate that utilization and that capacity," he said. "It has a very nonstop effect connected what benignant of margins you person complete clip and what benignant of superior ratio you besides person complete time."

Jassy said nan company's AI business is increasing 3 times arsenic accelerated arsenic AWS's was astatine this shape — saying it was a "multibillion-dollar" business and was increasing by triple-digit percentages twelvemonth complete year.

Companies that aren't already storing their information successful nan unreality are moving to do so, Jassy said, because it's "harder to beryllium successful and competitory successful generative AI if your information is not successful nan cloud." That's a boost for AWS, too, he said.

Amazon is among nan Big Tech companies that Wall Street has scrutinized for awesome AI spending, pinch questions astir erstwhile nan investments will commencement to present meaningful returns.

Just this week, Meta flagged "significant superior expenditures growth" successful 2025 arsenic it useful to build retired its AI infrastructure, among different projects. Alphabet, also, has said it's plowing money into building retired AI. CEO Sundar Pichai said successful August that nan "risk of underinvesting is dramatically greater than nan consequence of overinvesting."