Amazon to invest up to $100 billion into AI in 2025, reveals CEO Andy Jassy

Amazon

Like most other tech giants in the AI race, Amazon has revealed that its set to throw its might behind development of artificial intelligence. The company announced its quarterly results and reported $187.8 billion in revenue, up 10% year over year. The big talking point was AI during the investors’ call and Amazon CEO Andy Jassy outlined some of company’s plans.

Amazon is gearing up for a massive AI investment, with capital expenditures projected to exceed $100 billion in 2025. According to Jassy, the “vast majority” of this spending will be directed toward bolstering AI capabilities within its cloud computing arm, AWS.

Other big tech companies have also revealed their big AI investment plans. Meta CEO Mark Zuckerberg said that the company will spend close to $65 billion in 2025 on AI infrastructure development. Microsoft CEO Satya Nadella outlined his company's plans of spending close to $80 billion on AI. Google is also planning to pour billions of dollars in AI development in 2025.

During Amazon’s Q4 2024 earnings call, Jassy noted that last quarter’s capex spending hit $26.3 billion—an amount he described as a good benchmark for what to expect on an annualized basis next year. Extrapolating that figure suggests Amazon could spend around $105.2 billion in 2025, marking a significant leap from the $78 billion it invested in 2024.

Jassy also said that AI represents, “for sure, the biggest opportunity since cloud and probably the biggest technology shift and opportunity in business since the Internet.”

The Amazon CEO also spoke about being impressed by DeepSeek, the new model to come out from China. “I think like many others, we were impressed with what DeepSeek has done. I think in part impressed with some of the training techniques, primarily in flipping the sequencing of reinforcement training -- reinforcement learning being earlier and without the human-in-the-loop,” he told investors.

Jassy also said that the lowering costs of developing AI models won’t slow down Amazon’s spending. “Sometimes people make the assumption that if you’re able to decrease the cost of any type of technology component … that somehow it leads to less total spend in technology. We’ve never seen that to be the case,” Jassy said.