Amazon.com Inc. announced on Thursday that it plans to increase its capital expenditure to $100 billion in 2025, continuing its investments in artificial intelligence.
This figure is higher than the $83 billion spent last year. In October, Amazon CEO Andy Jassy had predicted that the company’s 2025 capital expenditure would exceed last year’s spending, primarily driven by growth in generative AI.
We spent $26.3 billion in capital expenditures during the fourth quarter, and I believe this is a reasonable representation of the expected annual capital expenditure rate in 2025, Jassy said during a call with investors after Amazon released its Q4 earnings report. A significant portion of that capital expenditure is dedicated to AI for AWS.
Since OpenAI launched its ChatGPT assistant at the end of 2022, Amazon has been rushing to invest in data centers, networking gear, and hardware to meet the growing demand for generative AI. The company has introduced a wave of AI products, including its own Nova models, Trainium chips, a shopping chatbot, and Bedrock, a marketplace for third-party AI models. Other tech companies are also making massive investments in AI.
Following mixed Q4 results, Amazon provided further updates on its spending plans. The company projected weaker-than-expected sales for the current period, causing its stock to drop more than 4% in extended trading.
After the early success of Chinese AI startup DeepSeek, tech companies are now facing new uncertainties regarding their AI spending plans.
