Amazon to Ramp Up AI Investments to $100 Billion in 2025

Amazon announced plans to increase its capital expenditures to $100 billion in 2025, continuing its aggressive investments in artificial intelligence. This marks a significant rise from $83 billion in 2024, aligning with CEO Andy Jassy’s prediction that AI-driven expansion would fuel higher spending.

“We spent $26.3 billion in capex in Q4, and that’s a reasonable estimate for an annualized capex rate in 2025,” Jassy told investors during Amazon’s Q4 earnings call. He emphasized that most of this spending will go toward AI investments for AWS, the company’s cloud computing division.

Amazon has been rapidly expanding its AI capabilities, building data centers, networking infrastructure, and advanced hardware to meet growing demand. The company has introduced several AI-powered products, including its Nova AI models, Trainium chips, shopping chatbot, and Bedrock marketplace for third-party AI models.

Tech giants Google, Microsoft, and Meta are also making massive AI investments. Alphabet recently announced plans to spend $75 billion in 2025, while Microsoft will allocate $80 billion to AI-focused data centers. Meta is set to spend up to $65 billion, primarily on AI computing infrastructure.

Despite its AI expansion, Amazon’s Q4 earnings report delivered mixed results, with weaker-than-expected sales projections overshadowing strong revenue and profit figures. Shares dropped over 4% in extended trading, prompting Jassy to reassure investors that the company is pursuing a once-in-a-lifetime opportunity in AI.

“We believe this is a long-term capital and business opportunity that will benefit our customers and shareholders,” Jassy stated. He also noted that some capex would be directed toward enhancing logistics and delivery services for Amazon’s retail operations.