Name: Amazon AWS CEO Pushes Back on AI Job Apocalypse Warnings
Uploaded: 2026-05-18T16:00:00Z
Duration: 8 min 17 s
Description: Amazon’s cloud division is at the center of the AI boom, powering companies building the next generation of AI models and agents. WSJ sat down with AWS CEO Matt Garman to learn more.

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Amazon’s cloud division is at the center of the AI boom, powering companies building the next generation of AI models and agents. WSJ sat down with AWS CEO Matt Garman to learn more. Photo: Alexander Hotz

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Amazon’s cloud division is at the center of the AI boom, powering companies building the next generation of AI models and agents. WSJ sat down with AWS CEO Matt Garman to learn more.

Amazon AWS CEO Pushes Back on AI Job Apocalypse Warnings

Are you worried that AI is gonna replace you as the CEO of AWS?

If I wasn't using AI, I would maybe be worried that I would be replaced, probably by another person, not the AI. But I think everybody should be really leaning in and understanding how they can leverage AI to be more efficient and effective at the job that they do and increase the output for their company and their customers.

Matt Garman runs Amazon's cloud business, AWS, giving him a rare vantage point over the AI boom as it unfolds in real time. You joined Amazon as an intern. You were AWS's first Product Manager. Now as CEO of AWS-

Yep.

You're seeing this moment of AI. I wonder how it compares to almost 20 years ago, when you were trying to convince companies to go to the cloud.

Yeah, it's actually a very similar type of situation. In the earliest days, 20 years ago of AWS, we had to kind of convince people why they would move from their existing data centers and move into a cloud world, and do things differently. AI has a lot of those same feels. A lot of people are thinking about, now, I can create code in a much easier way. I can create applications where I could never write before. I can create experiences for my customers that were just never possible. We're going through this process ourselves today, and now we're seeing not just incremental improvements, but 3x improvements, 5x improvements. In some cases, 10x improvements that we're getting from our software development teams. But it doesn't even stop at just our software product teams, we're actually giving AI in the hands of every single employee across Amazon. We use Amazon Quick, which is our product that really helps every single employee get AI. They can build their own agentic workflows, they can use AI to sort through all of their data. We're doing that across every single function in Amazon.

It's almost where, like how you start your day, "Hey, what do I need to get done today?"

Yes, it's exactly that. And that's what I do. I actually use it in my job. For this interview, I asked it to help me understand kind of the questions that you like to answer, and things that your viewers are interested in, just to help me be better prepared for all of my meetings that I have.

How do you feel it prepared you so far?

Great.

Oh, great, right. Well, what about, there's some concerns about AI going amiss. Are there any examples of how it's been misused? Or lessons learned?

It is a tool. And I think people can't just give up their, like have these systems go and do things without any sort of oversight, or owning the outcomes of that tool. And so sometimes I will get emails from people that are just largely gobbledy-gook, or-

Your own employees?

Yeah, they will. And it's, they're thinking, they're going fast, and not really looking at those. And I think it's a very obvious kind of area where there's a miss. I think, at a broader sense, and those ones are funny, and we poke at 'em and say like, "Look, you can't just send me AI-generated emails." And people are, they're sheepish about it, and solve that.

OpenAI has announced that they restructured the relationship with Microsoft. What does that mean for you?

Well, we're super excited to have OpenAI inside, and available to all of our AWS customers, available in Bedrock, to be used inside of-

Bedrock being your AI platform?

That's right. And so when we talk to customers, they want the very best models available in order to go build. And they wanna build inside of AWS. And just recently now, what customers have long told us is they really wanted OpenAI models. And so now they can access OpenAI models as well, really gives customers access to the whole suite of capabilities.

So you've had this relationship with Anthropic, AWS has been an investor.

Yeah.

You're putting money into OpenAI. How do you think about the relationship with these two bitter rivals?

Well, look, our view inside of AWS is that we wanna support the broad set of customers. And we've often worked with multiple competing technology providers or SaaS companies, or ISVs. We want them all to run inside of AWS. Because it's what our customers want.

Well, speaking of Anthropic.

Yeah.

Tell me about Project Rainier. This is a massive computing center in Indiana that came online last fall.

Yeah.

What have you learned so far? What are you seeing? What does it say for the future?

Specifically, this is regards to Trainium. And so Trainium-

Trainium is a chip?

Is our chip. And so Anthropic was our first really large partner that saw the potential of Trainium. And so we went and built Project Rainier, which is a very large multiple data centers full of Trainium chips that Anthropic uses to train their latest generation of leading models.

Trainium and Amazon's other chip, Graviton, helped power the company's huge data centers. I asked Garman to see them up close. Okay, so what do we have here?

This is a Trainium chip, so...

And why is this so important?

Trainium is the chip that powers a lot of our AI training and inference inside of AWS.

And so why was this a big breakthrough for your business, for your clients?

Well, a little over 10 years ago, we started building our own silicon. And we saw that we could actually deliver better performance for our customers at lower cost. And Graviton is kind of your CPU. And that was, and yes, we have a Graviton chip right here, exactly. And so Graviton was our next effort into custom chips, delivering 40% better performance for customers at 20% lower cost.

All of a sudden, Amazon's chip strategy is looking pretty smart. It has chips to both train AI and to run those AI agents. And now demand is exploding. A couple years ago, there was some in the markets, whether investors or rivals or just tech players in general thought maybe AWS was behind, and in the AI space, right? A lot of the attention was going to GPUs.

Yeah.

Going to NVIDIA's compute. And you've got a lot of data centers that were running on CPUs, but now you're seeing that inference is going to be more important in the future.

That's right.

Why is that?

No one actually gets value from training. Training is how you come up with these fantastic models. But inference is how all of the customers get value from these models. Our view was that those customers were gonna want choice. Which meant we wanted to be, and are great at hosting NVIDIA servers. But we also thought customers would want choice. And so more than, I think it's been six or seven years ago, we started building our own AI chips. And I think as we've progressed, they've seen our strategies start to evolve, and they've started to see other people realize that that strategy has a lot of merit.

And that's fueling some of this huge investment you're making this year. Surprised a lot of people, $200 billion in CapEx, much of which is going to AWS and AI infrastructure.

That's right.

Is that the chips? Is that data centers?

It's all of those things. In fact, we think this is a massive opportunity. And so, AWS today has a 37% operating margin, is growing at 28% year-over-year on a $150 billion base. That's a pretty good business to invest in. And it's one that we're excited to invest in.

As Amazon rushes to build out these giant data centers to take advantage of the moment, not everyone is so confident about this future. There's some concern out there, especially among software engineers, that they're gonna lose their job because of AI.

If the skillset that you really hang onto is your ability to write a good line of Java code, that probably is gonna be a less valuable skill going forward. But we are gonna need tons and tons of software developers who know how to build systems, who know how to think about solving problems for customers.

Yet, a lot of times some of the best examples of how AI is being used is talking about how fewer people are needed to accomplish something faster. So it makes people sometimes nervous.

Yeah, I understand that nervousness, but we view it as you do need fewer people to accomplish the same task, but you can do more things.

So you don't buy some of these tech leaders saying that there is going to be Great Depression-like job losses?

Everyone's entitled to their opinion, but I don't think that that's at all true. I think that there, it's the potential to create massive value, and I think there's gonna be new and different types of jobs. People are gonna have to adjust, learn different skills, and embrace it. But yes, I'm not in that camp.