Amazon CEO Andy Jassy revealed details about the company’s investments in generative AI in his annual shareholder letter published Thursday morning.

…[T]here are three distinct layers in the GenAI stack, each of which is gigantic, and each of which we’re deeply investing,” Jassy writes.

The “bottom layer” of Amazon’s AI strategy is to help developers and companies train models and produce predictions. Amazon says having its own custom AI training and inference chips will bring down costs for customers.

A “middle layer” serves companies that want to use their own data to customize existing foundational models and gain security and other features to build and scale generative AI applications.

The “top layer” is where Amazon builds generative AI applications for its own consumer businesses. For example, there’s “Rufus,” Amazon’s AI-powered shopping assistant, and the Amazon Web Services “Amazon Q.”

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