Andy Jassy on the Record and Nvidia After the Bell 02/26/25

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Kelly Evans (0:34)

Thank you very much, Scott, and congrats, Liz. And welcome to The Exchange. I'm Kelly Evans. We have a big hour ahead. A busy day on Washington, but we'll come back to that later on. It's also another busy day on the AI front. This time Amazon is launching its new generative AI product. It's a voice product. And the twist is it costs 20 bucks a month if you're not a Prime member. The shares are down 10% from their record high just three weeks ago. And they're on pace to snap a five month wind streak with their worst month in two years. Now it's the splashiest move we've seen from the tech giant in quite a while. So we'll see if that turns the tide here. And joining us now to talk about that in a first on CNBC interview is Amazon CEO Andy Jassy, along with our very own John Fort. Welcome to both of you, John.

John Ford (1:18)

All right, Kelly, thanks. Andy, thanks for coming all the way out to New York. You had a big announcement today. Alexa Plus, want to talk about that. I also want to mark 2025 is 10 years since you and I first sat down at Reinvent 2015

Andy Jassy (1:33)

It's amazing.

John Ford (1:33)

Yeah.

Andy Jassy (1:34)

Feels like it's been 20

John Ford (1:36)

We'll see how you feel after the interview. No. Tell me about Alexa Plus.

There's this shift in what Alexa can do. As we've got this era of new models in AI, you're in this agnostic use the best model for the job. How's Alexa Plus going to work better and differently for people?

Andy Jassy (1:56)

Well, we're really excited to announce Alexa Plus today. It's our next generation of personal assistant.

She's smarter, she's more capable, she's more useful, and you can do all the things you've been doing with Alexa for 10 years, but just every single one of those functions gets better with generative AI, the way we built it in. I'll give you some ways I've been using it myself, playing around for the last few weeks to give you an idea of why I like it so much. I'm a big music fan, you and I have talked about this before. The other day, I was trying to remember, I went to the opening night of the Guns N Roses Use Your Illusion Tour in 1991 in Alpine Valley, Wisconsin with my college roommate. I was trying to remember who the opening act was for it. So I asked Alexa and she reminded me it was Skid Row. She said, do you want to play Skid Row? I said, maybe not. I did want to play Guns N Roses song, but I wanted to play the song that I couldn't remember the name of. I said, it's a song that has the word apples in it. She's like, bad apples, do you want to play it? I said, yes. Think about that versus what Alexa's been. She wouldn't have known the opening act. She wouldn't have known when it was. She wouldn't have been able to get bad apples from Guns N Roses. Much smarter takes action.

If you use Alexa for Smart Home, you can now say, hey, we have guests coming to the house at 7 o'clock at night, please open the drapes, turn the lights on the porch in the driveway, raise the temperature 5 degrees and play mellow music in the dining room. All just verbally, no app, no complexity, just all happens, again, taking action. Or in New York, I can ask, where are good restaurants around where we are right now? She'll give me ideas. She'll ask if I want to make a reservation. She can make a reservation for me. So it's not just that she's really smart and can be conversational, but she can also do something that you just don't see today in these chatbots, which is take real actions and get real things done.

John Ford (3:57)

Multi-step awareness, context, that kind of thing. Now tie that in for me to the business overall, because we know about AWS, huge data center presence, huge scale. You guys are the biggest. You've also got Tranium Inferentia. You got chips that are tuned specifically to do the task that you want done in the data center.