On Thursday (April 11th), Amazon closed up 1.67% at $189.05, reaching a new high in nearly three years.

On the same day, Amazon CEO Andy Jassy released an annual letter to shareholders.

In this year's shareholder letter, in addition to introducing the company's performance over the past year to shareholders, Jesse also spent a lot of time discussing how he and Amazon internally view the technological revolution of artificial intelligence.

Jassy said in his letter that generative AI（GenAI）may be the largest technology transformation since the cloud (which itself, is still in the early stages), and perhaps since the Internet.

Jassy stated that Unlike the mass modernization of on-premises infrastructure to the cloud, where there’s work required to migrate, this GenAI revolution will be built from the start on top of the cloud."The amount of societal and business benefit from the solutions that will be possible will astound us all."

Jassy stated that most of the early public attention was focused on GenAI applications, but Amazon believes there are three levels in the GenAI stack. These three levels are: providing computing power to train AI models; Assist enterprises in applying their data to artificial intelligence models; The practical application of artificial intelligence, such as GenAI applications.

At each level, Amazon has a layout. "each of which is gigantic, and each of which we’re deeply investing."

●First, Amazon has custom computing chips that can provide computing power to train AI models.

Jassy said, "Customers have asked us to push the envelope on price-performance for AI chips, just as we have with Graviton for generalized CPU chips. As a result, we’ve built custom AI training chips (named Trainium) and inference chips (named Inferentia). In 2023, we announced second versions of our Trainium and Inferentia chips."

Jassy stated that multiple customers are currently using Amazon's artificial intelligence chips, including Aerospace, Airbnb, Hugging Face, Qualtrics, Ricoh, and Snap.

●Second, Amazon's Bedrock service helps other companies access AI models.

"Customers don’t wantonlyone model. They want access to various models and model sizes for different types of applications. Customers want a service that makes this experimenting and iterating simple, and this is what Bedrock does, which is why customers are so excited about it." Jassy wrote, "Bedrock is off to a very strong start with tens of thousands of active customers after just a few months."

●Currently, Amazon has dozens of GenAI applications.

We are building a large number of GenAI applications for each of Amazon's consumer businesses. These applications include Amazon's new artificial intelligence shopping assistant, Rufus, a more intelligent voice assistant, Alexa, Amazon Q encoding assistant, and more.

Jassy stated that although Amazon has built a large number of GenAI applications, he believes that "the vast majority will ultimately be built by other companies." He also predicts that many applications will use Amazon's tools in every layer of artificial intelligence development. "We’re optimistic that much of this world-changing AI will be built on top of AWS."

In addition, Jassy also reminds shareholders not to underestimate the importance of security in GenAI. Because "Customers’ AI models contain some of their most sensitive data."

At the end of the letter, Jassy wrote, "There has never been a time in Amazon’s history where we’ve felt there is so much opportunity to make our customers’ lives better and easier. We’re incredibly excited about what’s possible, focused on inventing the future, and look forward to working together to make it so."