LAS VEGAS — Matt Garman remembers sitting in an Amazon leadership meeting six or seven years ago, thinking about the future, when he identified what he considered a looming crisis.

Garman, who has since become the Amazon Web Services CEO, calculated that the company would eventually need to hire a million developers to deliver on its product roadmap. The demand was so great that he considered the shortage of software development engineers (SDEs) the company’s biggest constraint.

With the rise of AI, he no longer thinks that’s the case.

Speaking with Acquired podcast hosts Ben Gilbert and David Rosenthal at the AWS re:Invent conference Thursday afternoon, Garman told the story in response to Gilbert’s closing question about what belief he held firmly in the past that he has since completely reversed.

“Before, we had way more ideas than we could possibly get to,” he said. Now, “because you can deliver things so fast, your constraint is going to be great ideas and great things that you want to go after. And I would never have guessed that 10 years ago.”

He was careful to point out that Amazon still needs great software engineers. But earlier in the conversation, he noted that massive technical projects that once required “dozens, if not hundreds” of people might now be delivered by teams of five or 10, thanks to AI and agents.

Garman was the closing speaker at the two-hour event with the hosts of the hit podcast, following conversations with Netflix Co-CEO Greg Peters, J.P. Morgan Payments Global Co-Head Max Neukirchen, and Perplexity Co-founder and CEO Aravind Srinivas.

A few more highlights from Garman’s comments:

Generative AI, including Bedrock, represents a multi-billion dollar business for Amazon. Asked to quantify how much of AWS is now AI-related, Garman said it’s getting harder to say, as AI becomes embedded in everything. 

Speaking off-the-cuff, he told the Acquired hosts that Bedrock is a multi-billion dollar business. Amazon clarified later that he was referring to the revenue run rate for generative AI overall. That includes Bedrock, which is Amazon’s managed service that offers access to AI models for building apps and services. [This has been updated since publication.]

How AWS thinks about its product strategy. Garman described a multi-layered approach to explain where AWS builds and where it leaves room for partners. At the bottom are core building blocks like compute and storage. AWS will always be there, he said.

In the middle are databases, analytics engines, and AI models, where AWS offers its own products and services alongside partners. At the top are millions of applications, where AWS builds selectively and only when it believes it has differentiated expertise.

Amazon is “particularly bad” at copying competitors. Garman was surprisingly blunt about what Amazon doesn’t do well. “One of the things that Amazon is particularly bad at is being a fast follower,” he said. “When we try to copy someone, we’re just bad at it.” 

The better formula, he said, is to think from first principles about solving a customer problem, only when it believes it has differentiated expertise, not simply to copy existing products.

LAS VEGAS — After spending nearly two hours trying to impress the crowd with new LLMs, advanced AI chips, and autonomous agents, Amazon Web Services CEO Matt Garman showed that the quickest way to a developer’s heart isn’t a neural network. It’s a discount.

One of the loudest cheers at the AWS re:Invent keynote Tuesday was for Database Savings Plans, a mundane but much-needed update that promises to cut bills by up to 35% across database services like Aurora, RDS, and DynamoDB in exchange for a one-year commitment.

The reaction illustrated a familiar tension for cloud customers: Even as tech giants introduce increasingly sophisticated AI tools, many companies and developers are still wrestling with the basic challenge of managing costs for core services.

The new savings plans address the issue by offering flexibility that didn’t exist before, letting developers switch database engines or move regions without losing their discount. 

“AWS Database Savings Plans: Six Years of Complaining Finally Pays Off,” is the headline from the charmingly sardonic and reliably snarky Corey Quinn of Last Week in AWS, who specializes in reducing AWS bills as the chief cloud economist at Duckbill.

Quinn called the new “better than it has any right to be” because it covers a wider range of services than expected, but he pointed out several key drawbacks: the plans are limited to one-year terms (meaning you can’t lock in bigger savings for three years), they exclude older instance generations, and they do not apply to storage or backup costs.

He also cited the lack of EC2 (Elastic Cloud Compute) coverage, calling the inability to move spending between computing and databases a missed opportunity for flexibility.

But the database pricing wasn’t the only basic upgrade to get a big reaction. For example, the crowd also cheered loudly for Lambda durable functions, a feature that lets serverless code pause and wait for long-running background tasks without failing.

Garman made these announcements as part of a new re:Invent gimmick: a 10-minute sprint through 25 non-AI product launches, complete with an on-stage shot clock. The bit was a nod to the breadth of AWS, and to the fact that not everyone in the audience came for AI news.

He announced the Database Savings Plans in the final seconds, as the clock ticked down to zero. And based on the way he set it up, Garman knew it was going to be a hit — describing it as “one last thing that I think all of you are going to love.”

Judging by the cheers, at least, he was right.

LAS VEGAS — Amazon is pitching a future where AI works while humans sleep, announcing a collection of what it calls “frontier agents” capable of handling complex, multi-day projects without needing a human to be constantly involved.

The announcement Tuesday at the Amazon Web Services re:Invent conference is an attempt by the cloud giant to leapfrog Microsoft, Google, Salesforce, OpenAI, and others as the industry moves beyond interactive AI assistants toward fully autonomous digital workers.

The rollout features three specialized agents: A virtual developer for Amazon’s Kiro coding platform that navigates multiple code repositories to fix bugs; a security agent that actively tests applications for vulnerabilities; and a DevOps agent that responds to system outages. 

Unlike standard AI chatbots that reset after each session, Amazon says the frontier agents have long-term memory and can work for hours or days to solve ambiguous problems.

“You could go to sleep and wake up in the morning, and it’s completed a bunch of tasks,” said Deepak Singh, AWS vice president of developer agents and experiences, in an interview. 

Amazon is starting with the agents focused on software development, but Singh made it clear that it’s just the beginning of a larger long-term rollout of similar agents. 

“The term is broad,” he said. “It can be applied in many, many domains.”

During the opening keynote Tuesday morning, AWS CEO Matt Garman said believes AI agents represent an “inflection point” in AI development, transforming AI from a “technical wonder” into something that delivers real business value.

In the future, Garman said, “there’s going to be millions of agents inside of every company across every imaginable field.”

To keep frontier agents from breaking critical systems, Amazon says humans remain the gatekeepers. The DevOps agent stops short of making fixes automatically, instead generating a detailed “mitigation plan” that an engineer approves. The Kiro developer agent submits its work as proposed pull requests, ensuring a human reviews the code before it’s merged.

Microsoft, Google, OpenAI, Anthropic and others are all moving in a similar direction. Microsoft’s GitHub Copilot is becoming a multi-agent system, Google is adding autonomous features to Gemini, and Anthropic’s Claude Code is designed to handle extended coding tasks. 

Amazon is announcing the frontier agents during the opening keynote by AWS CEO Matt Garman at re:Invent, its big annual conference. The DevOps and security agents are available in public preview starting Tuesday; the Kiro developer agent will roll out in the coming months.

Some of the other notable announcements at re:Invent today:

AI Factories: AWS will ship racks of its servers directly to customer data centers to run as a private “AI Factory,” in its words. This matters for governments and banks, for example, that want modern AI tools but are legally restricted from moving sensitive data off-premises.

New AI Models: Amazon announced Nova 2, the next generation of the generative AI models it first unveiled here a year ago. They include a “Pro” model for complex reasoning, a “Sonic” model for natural voice conversations, and a new “Omni” model that processes text, audio, and video simultaneously.

Custom Models: Amazon introduced Nova Forge, a tool that lets companies build their own high-end AI models from scratch by combining their private data with Amazon’s own datasets. It’s designed for businesses that find standard models too generic but lack the resources to build one entirely alone.

Trainium: Amazon released its newest home-grown AI processor, Trainium 3, which it says is roughly 4x faster and 40% more efficient than the previous version. It’s central to Amazon’s strategy to lower the cost of training AI and provide a cheaper alternative to Nvidia GPUs. Executives also previewed Trainium 4, promising to double energy efficiency again.

Killing “Tech Debt”: AWS expanded its Transform service to rewrite and modernize code from basically any source, including proprietary languages. The tool uses AI agents to analyze and convert these custom legacy systems into modern languages, a process Amazon claims is up to five times faster than manual coding.

Stay tuned to GeekWire for more coverage from the event this week.

As we make our way to AWS re:Invent today in Las Vegas, these are some of the questions on our mind: Will Amazon CEO Andy Jassy make another appearance? Will this, in fact, be Amazon CTO Werner Vogels’ last big closing keynote at the event? Will we be able to line up early enough to score a seat inside the special Acquired podcast recording Thursday morning? 

And how many million enterprise AI billboards will we see between the airport and the Venetian?

But more to the point for Amazon, the company faces a critical test this week: showing that its heavy artificial intelligence investments can pay off as Microsoft and Google gain ground in AI and the cloud.

A year after the Seattle company unveiled its in-house Nova AI foundation models, the expansion into agentic AI will be the central theme as Amazon Web Services CEO Matt Garman takes the stage Tuesday morning for the opening keynote at the company’s annual cloud conference.

The stakes are big, for both the short and long term. AWS accounts for a fifth of Amazon’s sales and more than half of its profits in many quarters, and all the major cloud platforms are competing head-to-head in AI as the next big driver of growth.

With much of the tech world focused on the AI chip race, the conference will be closely watched across the industry for news of the latest advances in Amazon’s in-house Trainium AI chips. 

But even as the markets and outside observers focus on AI, we’ve learned from covering this event over the years that many AWS customers still care just as much or more about advances in the fundamental building blocks of storage, compute and database services.

Amazon gave a hint of its focus in early announcements from the conference:

• The company announced a wave of updates for Amazon Connect, its cloud-based contact center service, adding agents that can independently solve customer problems, beyond routing calls. Amazon Connect recently crossed $1 billion in annual revenue.
• In an evolution of the cloud competition, AWS announced a new multicloud networking product with Google Cloud, which lets customers set up private, high-speed connections between the rival platforms, with an open specification that other providers can adopt. 
• AWS Marketplace is adding AI-powered search and flexible pricing models to help customers piece together AI solutions from multiple vendors.

Beyond the product news, AWS is making a concerted effort to show that the AI boom isn’t just for the big platforms. In a pitch to consultants and integrators at the event, the company released new research from Omdia, commissioned by Amazon, claiming that partners can generate more than $7 in services revenue for every dollar of AWS technology sold.

Along with that research, AWS launched a new “Agentic AI” competency program for partners, designed to recognize firms building autonomous systems rather than simple chatbots.

Garman’s keynote begins at 8 a.m. PT Tuesday, with a dedicated agentic AI keynote from VP Swami Sivasubramanian on Wednesday, an infrastructure keynote on Thursday morning, and Vogels’ aforementioned potential swan song on Thursday afternoon. 

Stay tuned to GeekWire for coverage, assuming we make it to the Strip!

ChatGPT maker OpenAI, exercising newfound freedom under its renegotiated Microsoft partnership, will expand its cloud footprint for training and running AI models to Amazon’s infrastructure under a new seven-year, $38 billion agreement.

The deal, announced Monday, positions Amazon as a major infrastructure provider for Microsoft’s flagship AI partner, highlighting seemingly insatiable demand for computing power and increasingly complex alliances among big companies seeking to capitalize on AI.

It comes as Microsoft, Amazon, and big tech companies attempt to reassure investors who’ve grown concerned about a possible bubble in AI spending and infrastructure investment.

Under its new Amazon deal, OpenAI is slated to begin running AI workloads on Amazon Web Services’ new EC2 UltraServers, which use hundreds of thousands of Nvidia GPUs. Amazon says the infrastructure will help to run ChatGPT and train future OpenAI models.

Amazon shares rose nearly 5% in early trading after the announcement.

“Scaling frontier AI requires massive, reliable compute,” said OpenAI CEO Sam Altman in the press release announcing the deal. “Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.”

Matt Garman, the AWS CEO, said in the release that Amazon’s cloud infrastructure will serve as “a backbone” for OpenAI’s ambitions.

In an interview with CNBC, Dave Brown, Amazon’s vice president of compute and machine learning services, said the new agreement represents “completely separate capacity” that AWS is building out for OpenAI. “Some of that capacity is already available, and OpenAI is making use of that,” Brown told CNBC.

Amazon has also been deepening its investment in AI infrastructure for Anthropic, the rival startup behind the Claude chatbot. Amazon has invested and committed a total of $8 billion in Anthropic and recently opened Project Rainier, an $11 billion data center complex for Anthropic’s workloads, running on hundreds of thousands of its custom Trainium 2 chips.

Microsoft has been expanding its own relationship with Anthropic, adding the startup’s Claude models to Microsoft 365 Copilot, GitHub Copilot, and its Azure AI Foundry platform

Up to this point, OpenAI has relied almost exclusively on Microsoft Azure for the computing infrastructure behind its large language models. The new deal announced by Microsoft and OpenAI last week revised that relationship, giving OpenAI more flexibility to use other cloud providers — removing Microsoft’s right of first refusal on new OpenAI workloads.

At the same time, OpenAI committed to purchase an additional $250 billion in Microsoft services. Microsoft still holds specific IP rights to OpenAI’s models and products through 2032, including the exclusive ability among major cloud platforms to offer OpenAI’s technology through its Azure OpenAI Service.

OpenAI’s new $38 billion deal with Amazon builds on a relationship that began earlier this year, when Amazon added OpenAI’s first open-weight models in five years to its Bedrock and SageMaker services. Released under an open-source license, those models weren’t bound by OpenAI’s exclusive API agreement with Microsoft, letting Amazon offer them on its platforms.

The latest announcement is part of a series of deals by OpenAI in recent months with companies including Oracle and Google — committing hundreds of billions of dollars overall for AI computing capacity, and raising questions about the long-term economics of the AI boom.