Amazon CEO Andy Jassy on AI: The cost of inference has to come down

Watch on YouTube ↗  |  January 20, 2026 at 13:25  |  3:45  |  CNBC
Speakers
Andy Jassy — CEO, Amazon

Summary

Amazon CEO Andy Jassy discusses the impact of AI on jobs, Amazon's custom Trainium chips, and the unprecedented demand for AI compute. He argues that custom AI silicon is essential for lowering inference costs and maintaining margins, and notes that AI labs are consuming massive compute and seeking funding. He also comments on the sustainability of circular AI investment deals, saying outcomes will vary.

  • Jassy says technology transformations create new jobs medium to long term.
  • Amazon maintains a deep relationship with NVIDIA while pursuing custom Trainium chips.
  • Trainium 2 offers 40% better price performance, is fully subscribed, and is used by Anthropic.
  • Trainium 3 is released with another 40% improvement over Trainium 2.
  • Jassy says not pursuing custom AI silicon leaves companies structurally disadvantaged.
  • AI compute demand is unprecedented, driving power needs and data center construction.
  • AI labs need funding for compute, leading compute providers to invest in customers.
  • Jassy says not all such investments succeed and the hit rate is variable.
Ideas
Andy Jassy CEO, Amazon 0:25
Amazon Trainium cuts inference costs.
Amazon's custom AI silicon, Trainium, delivers significantly better price-performance than leading GPUs, which is essential for lowering inference costs and maintaining reasonable margins in its large inference business. Trainium 2 is fully subscribed, a multibillion-dollar business, and is used by Anthropic for its next cloud version; Trainium 3 is another 40% improvement. Jassy argues companies not pursuing custom AI silicon will be structurally disadvantaged.
AMZN HIGH
Andy Jassy CEO, Amazon 2:04
AI compute demand drives infrastructure buildout.
AI compute consumption is unprecedented, with AI labs consuming massive amounts of compute and requiring funding. This is driving significant demand for power and data center construction, creating a strong infrastructure buildout theme.
DTCR POWER HIGH
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This CNBC video, published January 20, 2026, features Andy Jassy discussing AMZN, DTCR, POWER. 2 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Andy Jassy  · Tickers: AMZN, DTCR, POWER