Amazon, an American multinational technology company engaged in electronic commerce and cloud computing, announced its intention to increase its investments in artificial intelligence (AI) This year.
The technology giant has disclosed plans to increase its capital expenses to around $ 105.2 billion in 2025, marking an increase of 35% compared to the $ 78 billion spent in 2024. The major part of this investment will be Channeled in artificial Intelligence capacities (AL) within its Cloud division, Amazon Web Services (AWS), according to CEO Andy Jassy.
During the call for results of the fourth quarter of the company, Jassy stressed that the $ 26.3 billion spent in the fourth quarter of 2024 report a high annual spending trend for 2025.
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“We spent $ 26.3 billion in CAP in the fourth quarter, and I think that is reasonably representative of what you expect from a CAPEX annualized rate in 202. The vast majority of these capex expenses are on AI for AWS ”, He said during a call with investors.
Jassy tried to reassure investors on the call that the leap in expenses was worth it, calling it a “single commercial opportunity”.
“I think that our activities, our customers and our shareholders will be happy, in the long term, that we are looking for the opportunity for fixed assets and the commercial opportunity in AL. We also have Capex, which we are going this year in our stores, really in order to try to continue to improve the delivery speed and our cost to serve ”he said.
The CEO has also rejected the hypotheses that the reduction in AL costs would lead to a reduction in technological investments, comparing the adoption of AL to past technological revolutions as the Internet and Cloud Computing.
Amazon has invested in data centers, networking equipment and equipment to meet the vast generative AI demand. This investment represents Amazon’s vision for collaborative technology that helps employees and improves safety and sustainability while accelerating delivery speed.
Last year, the technology giant announced the launch of several AI innovations that cause the shopping and user delivery experience. The company has deployed the recovery of vision assisted packages (VAPR), a solution supplied by the AI which automatically identifies the right packages for drivers in each store, which will be deployed in 1000 electric van by Rivian at the beginning of 2025. VAPR Projects Green and Red Lights on the packages with each stop, removing the need for drivers to sort them manually at the back of their vans.
In addition, Amazon has announced the deployment of purchasing tools powered by AI in its application. With this, buyers can save energy and energy purchases for products with new Amazon purchase guides available in the Amazon purchase application and the mobile website. They help reduce the time that customers spend looking for before buying by proactively consolidating the key information they need with Amazon’s wide selection, which facilitates the search for the right product for their needs.
The increase in Amazon in AI spending this year occurs while other technological companies also spend AI. Remember that Google Parent Alphabet said it was planning to invest around $ 75 billion in capital spending this year. Last month, Microsoft said that he planned to spend $ 80 billion during the 2025 fiscal year for the construction of data centers to take charge of IA workloads. Meta said it would spend up to 65 billion dollars on capital expenditure because it works to build more data centers and computer infrastructure.
Like the Internet, AI is considered the next big wave of technological transformation. With AI about to reshape industries, large technological companies show no sign of slowdown in investments. Instead, these companies accelerate their investments, each in the running for domination in the next phase of AI innovation.
