Read Amazon CEO’s annual letter. He predicts AI will get cheaper thanks to chip improvements.

AI is going to get a lot cheaper, especially as the price of chips comes down, Amazon CEO Andy Jassy said Thursday in his annual shareholder letter.

Jassy pointed to chips as “the biggest culprit” behind the cost of AI. “Most AI to date has been built on one chip provider,” Jassy wrote in an apparent reference to Nvidia.

But inference, or what AI models produce, will become more efficient in the next couple of years, Jassy wrote. Chips will also offer progressively…