Amazon's Big Bet on AI: Jassy's Bold Vision to Slash Costs and Fuel Crypto Innovation

Holy smokes, Amazon's CEO Andy Jassy just dropped a bombshell on CNBC's Squawk Box! He's dead serious about making AI infrastructure affordable for everyone, and Amazon Web Services (AWS) is leading the charge with their own chips and a plan to cut inference costs down to size.

Jassy wasn't having any of that speculation about AI model efficiency reducing the need for infrastructure. He fired back, "We have very high demand. I don't see us slowing down our building centers right now!"

He made it crystal clear that AWS isn't feeling any drop-off in AI infrastructure demand, even with the economy acting all wonky and tariffs looming like a dark cloud. Sure, more efficient models are great, but Jassy knows the real AI infrastructure challenges are way deeper and more stubborn than that.

"If you're building frontier models like we are, you're tackling the same tough problems," Jassy declared. "The lower we can make the cost of AI, the more customers are going to jump on board!"

Lowering Costs Unlocks a Spending Frenzy

Jassy drew a mind-blowing comparison between today's AI revolution and the early days of AWS. He said that when costs per unit of compute drop, customers don't spend less—they go wild with innovation and spend even more!

"It lets them save on what they're building, but they don't spend less," he explained. "It sets them free to do more crazy innovation!"

So, what's the secret sauce for cutting AI costs? Jassy spilled the beans: it's all about the chips and the cost of inference, that fancy process of making predictions with trained models. Right now, training is gobbling up all the cash, but Jassy knows inference will be the real money pit once things get big.

AWS is taking matters into their own hands by cooking up custom AI chips. Jassy bragged that these bad boys deliver a whopping 30% to 40% better price performance than the GPU-based instances out there. And he didn't stop there—reducing inference costs means pushing the limits of both hardware and software.

Jassy laid it all out on the table: "If you sat in on the AWS team meetings right now, they're totally fired up. They feel like it's their mission to make AI costs a whole lot less than they are today!"

But here's where it gets really exciting for the crypto world. Developers have been itching to use AI in all sorts of ways, but they've been hitting a brick wall thanks to infrastructure and cost headaches. With more affordable tech on the horizon, we could see a whole new wave of blockchain-native AI apps, from on-chain analytics to decentralized autonomous agents, taking the world by storm!