Amazon’s Bold Move: A $100 Billion Investment in AI by 2025
Amazon has announced a significant plan to invest over $100 billion in AI for 2025, marking a considerable increase from its earlier projection of $75 billion for the same year. This spending primarily focuses on enhancing their Amazon Web Services (AWS) cloud division’s AI capabilities. CEO Andy Jassy highlighted that the fourth-quarter capital expenditures of 2024, which reached $26.3 billion, serve as a good indicator of what to expect for the upcoming year, translating to an annualized figure around $105 billion.
Despite some industry voices cautioning over the sustainability of AI funding, Jassy maintains that lowering costs associated with AI will only stimulate demand rather than diminish overall spending. He compared the current AI demand surge to the early expansions seen in the Internet and cloud services.
Other major tech firms echo these sentiments, for instance, Meta’s CEO Mark Zuckerberg announced plans to invest "hundreds of billions" in AI over the long term. The company plans at least $60 billion in capital expenditures for 2025, mainly directed toward AI infrastructure.
Alphabet has also noted an increase in its capital expenditure, ramping it up by 42% to $75 billion, with CEO Sundar Pichai asserting that reduced costs will facilitate more feasible AI use cases. Similarly, Microsoft revealed a notable intention to allocate $80 billion for AI data centers in 2025.
Notably, as firms like DeepSeek surfaced discussions about potential cuts to AI budgets, the overwhelming consensus among big tech leaders remains clear: AI spending is set to persist and likely escalate further.
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