Amazon intends to allocate approximately $100 billion toward AI by 2025.
AWS sign-in at Javitz Center NYC. Fionna Agomuoh / Digital Trends
Amazon invested $26.3 billion in capital expenditures during Q4 of 2024, which CEO Andy Jassy indicated is "reasonably representative" of what the company intends to spend quarterly in 2025. He mentioned that the "vast majority" of this expenditure will likely be directed towards Amazon Web Services and AI development.
This announcement coincides with a significant effort by almost all major players in the AI sector to heavily invest in AI for the upcoming year. Earlier this week, Alphabet CEO Sundar Pichai informed investors that Google aims to allocate approximately $75 billion for AI capital expenditures this year, while Meta plans to spend between $60 billion and $65 billion. Microsoft is set to commit $80 billion to AI capital expenditures in 2025.
In December, Amazon disclosed a partnership with Anthropic, the creator of the Claude large language model, to train the next generation of LLMs using its newly launched Trainium2 processors. To facilitate this, Amazon is building a data center that will house hundreds of thousands of these chips. According to Jassy, the company intends to unveil the Trainium2’s successor, Trainium3, later this year.
"We're all learning from each other," Jassy remarked regarding competition among companies on Thursday. "You've seen and will continue to see a lot of leapfrogging among us."
These investments come as the U.S. AI industry grapples with the release of DeepSeek, an AI that matches the performance of OpenAI’s top reasoning models at a significantly lower cost and energy requirement. Although Amazon’s stock has risen 40% over the last year, its value fell by 4% after Thursday's earnings call.
Andrew Tarantola is a journalist with over a decade of experience reporting on emerging technologies, including robotics and machine intelligence.
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Amazon intends to allocate approximately $100 billion toward AI by 2025.
On Thursday, Amazon CEO Andy Jassy informed investors that the company intends to invest over $100 billion in capital expenditures for AWS and AI development in 2025.
