08:12 AM EDT, 04/11/2024 (MT Newswires) -- Amazon ( AMZN ) Chief Executive Andy Jassy said Thursday in a letter to shareholders that he is committed to cutting costs while the company boosts investment in artificial intelligence.

The Amazon ( AMZN ) chief said the company has been trimming costs with its regionalization efforts, along with using more advanced semiconductors for its cloud computing division Amazon Web Services.

"We will work hard to spend wisely and maintain our lean culture," Jassy said. "We understand the importance of continually reinforcing a cost-conscious culture, particularly in a business incurring net losses."

Jassy added that Amazon's ( AMZN ) main strategy to enable software developers in and out of the company to innovate was building "primitive services" or "pillars," terms Jassy used to describe the company's most successful businesses.

The e-commerce giant's next pillar would be generative artificial intelligence, Jassy said, noting that Amazon's ( AMZN ) retail, Prime subscription and cloud computing units were its first three pillars.

"While we're building a substantial number of GenAI applications ourselves, the vast majority will ultimately be built by other companies," Jassy said. He added that he is optimistic that "much of this world-changing AI will be built on top of AWS."

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