What AI progress has been revealed in Amazon's Q3 earnings report?
Not willing to fall behind Microsoft, Amazon remains passionate about generative AI.
Amazon remains enthusiastic about generative AI and has increased its use of AI in its earnings report.
According to media reports on Friday, compared to the second quarter, Amazon's mentions of Bedrock and CodeWhisperer (Amazon's two AI products) in its third-quarter earnings report increased by 67% and 200% respectively. At the same time, mentions of Anthropic (a popular AI startup recently invested in by Amazon) doubled.
During the earnings call, Amazon CEO Andy Jassy maintained his enthusiasm for artificial intelligence. He listed the ways in which Alexa, stores, and other Amazon businesses use AI technology, and predicted that the opportunities brought by generative AI would generate "billions of dollars" in revenue for Amazon's AWS cloud services in the coming years.
However, although the revenue growth of Amazon AWS ended a six-quarter slowdown, the 12% growth rate is still not high, compared to the 29% growth rate reported by Microsoft's Azure cloud computing division on Tuesday. Amazon may have some concerns.
The performance of AWS is the biggest flaw in Amazon's performance this quarter. The good news is that Amazon's advertising business revenue surged by 26% to reach $12.1 billion. This high-profit business, combined with cost-cutting measures such as layoffs, helped the third-quarter operating profit exceed the company's best expectations.