Amazon CEO Andy Jassy speaks during the main address on AWS RE: Report 2024, a conference hosted by the Amazon Web Services, in Venetian Las Vegas on December 3, 2024. In Las Vegas, Nevada.
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Amazon He said on Thursday that he plans to increase his capital expenditures at $ 100 billion in 2025, as he continues investments in artificial intelligence.
The Capex figure exceeds last year’s consumption of approximately $ 83 billion. Amazon CEO Andy Jassy predicted in October For the 2025 Capex company to surpass last year’s figure, primarily triggered by the growth of the generative AI.
“We spent $ 26.3 billion in Capex Q4, and I think it’s reasonable representative for what you expect the Capex annual rate of 2025,” Jassy said on an invitation with investors after the company posted its own Earnings in the Fourth quarter. “The vast majority of this Capex is on AWS.”
Amazon has been in a hurry to invest in data centers, network and hardware to satisfy a huge demand for generative AI, which has exploded in popularity since Openi published his Chatgpt Assistant in late 2022. Amazon introduced the noise of AI products, including its own set of new models, tracium chips, trade chatbot and market for third -party models called Bedrock.
Other technological companies also spend large on AI. Google Parent Alphabet said Tuesday It is expected to invest around $ 75 billion this year in capital expenditures. Last month, Microsoft said he was planning to spend 80 billion dollars in a fiscal 2025. On the construction of data centers to support the work load of AI. Target said he would spend As many as $ 65 billion on capital expenditures that work on the construction of a higher data center and a computer infrastructure.
Amazon gave update after consumption plans Mixed results reporting for the fourth quarter. The company has projected weaker sales than expected for the current period, which overshadowed the rhythm on the upper and lower lines in the fourth quarter. The shares have fallen more than 4% in extended trading.
Jassy tried to persuade investors at the invitation that the spending jump would be valuable, calling it “once in a life of a type of business opportunity.”
“I think our business, our customers and shareholders will be happy, medium to long-term, that we follow the capital opportunity and a business opportunity in Ai,” Jassy said. “We also have a Capex that we spend this year in shops in stores, really with the aim of trying to continue to improve delivery speed and our costs to serve.”
Technical companies face the fresh skepticism of their consumption plans after the early success of the Chinese AI startup Deepseek. The laboratory claims that it only took two months and less than $ 6 million to develop its R1 model, which he says that rival Openai’s O1. The markets were broken Starting last week, with chip manufacturers Nvidia and Broadco Loss of a combined $ 800 billion in market limit.
