Amazon expects to spend $100 billion on capital expenditures in 2025

Amazon On Thursday, he said he plans to raise capital expenditures to $100 billion in 2025 as he continues to invest in artificial intelligence.

CAPEX figures are roughly $83 billion above last year’s spending. Andy Jassy, ​​Amazon CEO I was predicting it in October The company’s 2025 CAPEX exceeds last year’s figures driven primarily by growth in generation AI.

“We spent $26.3 billion on CAPEX in the fourth quarter, which I think is reasonably representative of what we expect to see an annual CAPEX rate in 2025.” Fourth Quarter Revenue Report. “Most of that maintenance is in AWS AI.”

Amazon has rushed to invest in data centers, networking gear and hardware to meet the enormous demand for generating AI, which has exploded in popularity since Openai released its CHATGPT assistant in late 2022 There is. Amazon has introduced a surge in AI products, including its own set. A market for NOVA models, training chips, shopping chatbots, and third-party models called Bedrock.

Other high-tech companies are also spending heavily on AI. Google’s parents alphabet I said it on Tuesday This year, it plans to invest around $75 billion in capital expenditures. last month, Microsoft I said it was going to be spent $80 billion in 2025 on data center buildouts to support AI workloads. Meta I said it would cost As much as $65 billion in capital expenditures will work to build more data centers and computing infrastructure.

Amazon has updated on its subsequent spending plans Reporting mixed results In the fourth quarter. The company projected weaker sales than expected for the current period, covering the beat with top and bottom lines in the fourth quarter. Stocks fell more than 4% in extended trading.

Jassy tries to reassure investors with a call that spending jumps are worth it, calling it a “one-in-a-lifetime business opportunity.”

“I think both our business, our customers and our shareholders are pleased with the pursuit of capital and business opportunities in AI,” Jassy said. “We’ve also spent CAPEX this year on our store business. In fact, we’re looking to continue to improve delivery speeds and costs to service.”

High-tech companies face renewed skepticism about AI spending plans after the early success of Chinese AI startup DeepSeek. The lab claims it took only two months to develop the R1 model, and it cost less than $6 million. The market has been rolled By the time of release last week, we will be holding a chip maker and nvidia and Broadcom It lost its market capitalization totaling $800 billion.

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