Andy Jassy sparked an 8 -minute defense from Amazon’s AI play book on the call of results

“I have two (questions) for you on AWS; they are a bit difficult, but I’m going to throw them away,” Nowak told Amazon CEO, Andy Jassy. “There is a story of the Wall Street financing person at the moment that WS is late in the AI generation with concerns about the loss of peer sharing. What is your refutation to this, and tell us about your most important focal points of the team and the team’s peers, just to make sure that WS remains at the innovation pre-coup in the peers of hypecal. ”

Nowak also pushed Jassy on the reasons why it would not be right to assume that AWS income growth should not accelerate in the rear half of the year given all the generative offers of AWS and the generalized demand for companies of all sizes to collect this processing technology.

Jassy replied, stressing that these are the first stages of a technological transformation that will extend far in the future. Although some of the best border model suppliers use AWS to a certain extent, non -AWS customers who rush to build generative and agental AIs services using AWS are “early enough, and many of them are simply smaller in terms of use compared to some of these heaviest applications I mentioned earlier”. Which is necessarily to be changed.

So, if you follow Jassy’s thought, because more and more companies determine what they want to build and how they want to build it, they will start to have different needs. For the largest manufacturers of models, such as Openai or Anthropic, Jassy provides that their costs pass from a mixture between the formation of their models and the cost associated with “inference”, or the part intended for the customer where the model spits a prediction, an answer or an action, mainly inference expenses. And Jassy maintains AWS is well positioned for this transition due to the AI fleas line at low cost.

“It’s about 30% and 40% of better prices than other GPU suppliers at the moment, and we are already working on our third version,” he said.

For others, who wish to use the model of another company to create their own applications for generating interrogation intestance, Jassy argued that Amazon Bedrock, which offers models from a wide selection of companies, has become an essential and “develops very considerably”.

Jassy continued on this thread which is just the first in mind, noting that companies are barely starting to think about deploying AI agents and that with its recent agent AI ads, AWS will be well positioned to capitalize.

Amazon’s CEO, and former AWS chief, added that the AWS Cloud leadership position also provides a certain locking because IA “inference” only becomes another component of the company’s cloud battery.

“People will really run these applications (AI) near the place where their other applications take place, where their data is,” said Jassy. “There are so much more applications and data running in AWS than everywhere else.”

As for Nowak’s question about the possibility that the AWS growth rate is accelerating in the back of the year, Jassy would not respond directly, but stressed its optimism, partly from AWS customers starting to deploy more AI products on a scale that should continue to increase in the coming quarters.

Earlier in the call, Jassy had defended the income rate of 18% AWS in light in Microsoft lighting annual growth of annual income of 34% for its Azure Cloud and Alphabet unit recently reporting a quarterly growth of 32% for Google Cloud. Azure generates approximately two thirds of the revenues that WS makes, while Google Cloud records less than half of the annual income from the Amazon Cloud giant.

“You look at the company, it is an annual income rate of $ 123 billion, and it’s still early,” he said. “How often do you have an opportunity that represents $ 123 billion in annual operating rate where you say that it is still early? It is a very unusual opportunity that we are very optimistic.”

Are you a current employee or former AWS with reflections on this subject or advice to share? Contact Jason del Rey in jason.delrey@fortune.com,, jasondelrey@protonmail.comor via the signal of messaging applications and WhatsApp to 917-655-4267. You can also contact him is Linkedin or at @Delrey on X, @jdelrey on the wires, and on Bluesky.