Much of the current AI developments are all hype, according to Amazon’s CEO Andy Jassy. Speaking to CNBC, Jassy cited the generative AI tools as a part of a “hype cycle”, before stating that Amazon was aiming to focus on the “substance cycle”.

When it comes to Amazon developing its own semiconductors for AI computing, Jassy told CNBC that he sees the GenAI paradigm as split into three layers macro layers: compute at the bottom; the underlying large language models; and then the application layer at the top – for example, ChatGPT or Bard. While NVIDIA currently has over 80 per cent of the chip market share, Amazon currently has two in-house semiconductors present in the space: Trainium, for training machine learning models, and Inferentia, for inferences to manage output. Both, according to Jassy, offer superior price-performance ratios compared to competitors. In addition, Jassy oversaw the launch of Amazon Bedrock, a new service allowing organisations to access a range of generative AI foundation models from a single API.