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Amazon's CEO Talks About Short-Term Headwinds and Long-Term Plans





Date Published:
Author: CML News

Lede

Amazon CEO, Andy Jassy, addressed the challenges facing the company’s AWS cloud business due to companies' caution with spending, but also discussed the long-term growth opportunities for the company.

 

Summary

  • AWS cloud business with an $85 billion annualized revenue run rate is facing short-term headwinds due to companies being cautious about spending.
  • AWS support team is spending more time helping customers optimize their cloud spend.
  • Despite the short-term headwinds, many of the AWS fundamentals are looking good.
  • Amazon has evaluated each of its businesses' long-term potential and made decisions to discontinue pursuing some ventures, cut corporate jobs, and ask staff to return to the office at least three days a week.
  • The company has doubled its fulfillment center footprint and built out a last-mile transportation network.
  • In grocery, it ended free shipping on all orders over $35 and is looking for a mass grocery format that is worth expanding broadly.
  • Amazon is investing heavily in Large Language Models and Generative AI, expecting it will transform and improve almost all customer experiences.
  • AWS is offering machine learning chips Trainium and Inferentia to allow small and larger companies train and run their LLMs in production.
  • Amazon's CEO is optimistic that the company will emerge from this challenging macroeconomic time in a stronger position than when it entered it.

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