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The Amazon CEO, Andy Jassy, speaks during an opening speech at AWS RE: Invent 2024, a conference organized by Amazon Web Services, at Venetian Las Vegas on December 3, 2024 in Las Vegas, Nevada.
Noah Berger | Getty Images Entertainment | Getty images
Amazon Said on Thursday that plans to increase its capital expenses to $ 100 billion in 2025, since it continues its investments in artificial intelligence.
The Capex figure exceeds last year’s expenditure of approximately $ 83 billion. Amazon Andy Jassy CEO I had predicted in October That the company’s Capex 2025 would exceed last year’s figure, mainly driven by the growth of the generative AI.
“We spend $ 26.3 billion in CAPEX in the fourth quarter, and I think that is reasonably representative of what a capex rate annualized in 2025,” Jassy said on guard with investors after the company published its Fourth Quarter Gains Report. “The vast majority of that expense of Capex is in AI for AWS.”
Amazon has rushed to invest in data centers, network and hardware equipment to meet the vast demand for generative, which has exploded in popularity since Openai launched its chatgpt assistant at the end of 2022. Amazon has introduced a product gust Of AI, including its own set of Nova models, training chips, a purchasing chatbot and a market for third -party models called Bedrock.
Other technological companies are also spending a lot on AI. Google’s father Alphabet He said Tuesday Expects to invest around $ 75 billion in capital expenses this year. Last month, Microsoft He said he planned to spend $ 80 billion in fiscal year 2025 in the construction of data centers to admit ia work loads. Goal He said he will spend Up to $ 65 billion in capital expenses, as it works to build more data centers and computer infrastructure.
Amazon gave an update on his expense plans later Informing mixed results For the fourth quarter. The company projected weaker sales than expected for the current period, which eclipsed a rhythm in the last and lower in the fourth quarter. The shares fell more than 4% in the extended trade.
Jassy tried to reassure investors about the call that the jump in spending will be worth it, calling him a “unique commercial opportunity type in life.”
“I think that both our business, our clients and the shareholders will be happy, in the medium and long term, that we are looking for the capital opportunity and the business opportunity in AI,” said Jassy. “We also have Capex that we are spending this year in the business of our stores, really with the aim of trying to continue improving the delivery speed and our cost of serving.”
Technology companies face a new skepticism of their AI spending plans after the early success of the Chinese Deepseek startup. The laboratory states that it only took two months and less than $ 6 million to develop its R1 model, which says it rivals OPENAI rivals. The markets were destroyed For launch last week, with chips manufacturers Nvidia and Broadcom Lose a combined market limit of $ 800 billion.
