Amazon plans to spend $ 100 billion this year to capture ‘Once in a lifetime opportunity’ in Ai

Amazon Said thures it plans to boost its capital expecteditures to $ 100 billion in 2025, as it continues its investments in artificial intelligence.

The Capex Figure Exceds Last Year’s Spending of Roughly $ 83 Billion. Amazon Ceo Andy Jassy Had predicted in October That the company’s 2025 Capex Delhi Surpass Last Year’s Figure, Primarily Driven by Growth in General Ai.

“We Spent $ 26.3 Billion in Capex in Q4, and I think that is reasonally representative Fourth -Quarter Earnings Report“The Vast Majority of that Capex Spend is on Ai for Aws.”

Amazon Has Been Rushing to Invest in Data Centers, Networking Gear and Hardware to Meet Vast Demand for Generative Ai, which has exploded in popularity since openai related its opinai Roduced a flurry of ai products, including its of Nova Models, Trainium Chips, A Shopping Chatbot, and a Marketplace for Third-Party Models Called Bedrock.

Other Tech Companies are also spenting big on Ai. Google Parent Alphabet Said Tuesday It expects to invest about $ 75 billion in Capital Expenditures this year. Last month, Microsoft Said it planned to spend $ 80 billion in fiscal 2025 on the buildout of data centers to support ai workloads. Meta said it will spend As Much as $ 65 billion on Capital Expenditures as it works to construct more data center and computing infrastructure.

Amazon Gave an update on its spending plans after Reporting mixed results For the fourth Quarter. The company projectioned weaker-tha-exposed sales for the current period, which overshadowed a beat on the top and bottom lines in the fourth Quarter. Shares Fell more than 4% in Extended Trading.

Jassy tried to reassure investors on the call that the jump in spending will be Wortwhile, Calling it a “Once-in-a-Lifetime Type of Business’s Oportunity.”

“I think that bot our business, our customers and sharehlders will be happy, medium to long-term, that we’re pursuing the capital options and the business openity in AI,” Jassy SAID. “We also have capex that we’re spending this year in our stores business, really with an aim towards trying to control to improve the delivery speed and our cost to serve.”

Tech Companies are Facing Fresh Skepticism of their AI Spending Plans after the Early success of chinese ai storytup deepsek. The lab claims it only tuk two months and less than $ 6 million to Develop Its R1 Model, which it says Rivals Rivals Openai’s O1. Markets Were Roiled By the launch last week, with chipmakers Nvidia and Broadcom Losing a combined $ 800 billion in Market Cap.

Watch: Multiple drivers for amazon long-term