Amazon CEO says he remains committed to cost cuts and AI

Andy Jassy – the chief executive of Amazon.com Inc (NASDAQ: AMZN) says he’s committed to continue investing in artificial intelligence. Shares of the multinational are still slightly down in premarket.

Amazon says its AI offerings are gaining traction

The tech behemoth is “seeing significant traction in our GenAI offerings”, the chief executive added in his annual letter to shareholders on Thursday.

In November, $AMZN announced a new AI chip called Trainium2 with “three times more memory capacity” than its predecessor as Invezz reported here.

CEO Jassy also remains convinced that Prime Video “can be a large and profitable business on its own”.

Amazon is scheduled to report its financial results for the first quarter on April 25^th. Consensus is for it to earn 81 cents a share versus 31 cents per share a year ago.

$AMZN remains committed to cutting costs

Andy Jassy confirmed today that Amazon is “not done lowering costs” just yet. In fact, it has identified “several areas where we can lower costs further” without having to compromise on fast deliveries.

The almost $2.0 trillion giant based out of Seattle, Washington laid off hundreds of its cloud computing employees just last week.

$AMZN grew its advertising revenue about 24% on a year-over-year basis to $47 billion in 2023, as per the letter to shareholders – in which the chief executive also said the Nasdaq-listed firm has “considerable upside in each of the businesses”.

You can read CEO Jassy’s full letter to shareholder on this link.