08:15 AM EDT, 04/10/2025 (MT Newswires) -- Amazon.com ( AMZN ) Chief Executive Andy Jassy said in his annual shareholder letter Thursday that he expects artificial intelligence costs to eventually decrease.

"AI does not have to be as expensive as it is today, and it won't be in the future," Jassy wrote.

He said the rapid advancements in the technology and a more competitive chip market will bring down costs.

Jassy also said that more price-performant chips, along with improvements in "model distillation, prompt caching, computing infrastructure, and model architectures" will reduce the cost per unit in AI over time, allowing customers to use AI expansively.