
Fionna Agomuoh / Digital Trends
In the fourth quarter of 2024, Amazon allocated $26.3 billion for capital expenditures, which CEO Andy Jassy mentioned is “reasonably representative” of its expected quarterly spending throughout 2025. He indicated that a significant portion of this budget will be directed toward Amazon Web Services and artificial intelligence initiatives.
This announcement arrives as numerous leading companies in the AI sector are committing substantial resources to AI advancement this year. Earlier this week, Alphabet’s CEO, Sundar Pichai, informed investors that Google plans to invest around $75 billion in AI capital expenditures in 2025, while Meta is likely to spend between $60 and $65 billion. Similarly, Microsoft has pledged $80 billion for AI-related capital investments this year.
In December, Amazon announced a partnership with Anthropic, the creator of the Claude large language model, aimed at training future generations of LLMs on its newly introduced Trainium2 processors. To support this effort, Amazon is currently building a data center to host hundreds of thousands of these chips. Jassy also mentioned that the company plans to introduce Trainium2’s successor, Trainium3, later this year.
“We’re all learning from one another,” Jassy remarked regarding the competitive landscape on Thursday. “You will see a lot of innovation and advancements as we continue to compete.”
These financial commitments come amid shifts in the American AI sector prompted by DeepSeek’s launch, an AI that matches the performance of OpenAI’s top reasoning models but at a fraction of the price and energy consumption. Although Amazon’s stock has appreciated by 40% over the past year, it experienced a 4% drop following the earnings call on Thursday.