Amazon plans to invest over $100 billion in AI this year, with most going to enhance AWS, as announced by the CEO Andy Jassy during the Q4 earnings call. This decision contrasts with anticipated AI budget cuts in the tech industry.
In 2024, Jassy highlighted a fourth-quarter capex of $26.3 billion, suggesting a yearly investment estimate of approximately $105.2 billion for 2025, significantly up from the $78 billion Amazon spent in 2024. Despite concerns about declining costs affecting revenues, the tech giant remains optimistic about its AI strategy.
Jassy allayed concerns over lower AI prices affecting Amazon’s revenue, noting that reduced costs might spur increased demand for AI technology. He expressed that lowering costs does not necessarily result in decreased overall technology spending, based on the company’s observations. This was emphasized during the earnings call.
Amazon aligns its investment strategy with tech giants like Meta, Alphabet, and Microsoft, all boosting AI spending. Meta’s CEO pledged “hundreds of billions” for AI. Alphabet hiked 2025 capex by 42% to $75 billion. Microsoft plans $80 billion for AI data centers in 2025.
Sources News From Various Digital Platforms, Websites, Journalists, And Agencies.
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