- The last quarter of Amazon Capex was $ 26.3 billion the last quarter, with a ready to continue growth
- The company plans to spend a lot on AI projects in 2025 to maintain rivals rhythm
- Microsoft and Google are also spending more on AI
The Amazon CEO seems to have indirectly revealed the company’s plans to assign around $ 100 billion to capital spending in 2025, with much of the money destined for AI.
The news occurs when the electronic and cloud electronic commerce giant announced its financial results of the fourth quarter and end of the year.
Amazon’s revenues for the final period of three months of 2024 increased 10% year after year to $ 187.8 billion, increasing their income from the whole year to $ 638.0 billion, 11% more compared to 2023.
Amazon will invest even more money in 2025
His Amazon Web Services Cloud Divison represented about 15-17% of his complete income, depending on whether we take a quarterly or annual overview. Both periods saw increases of 19% year after year.
Speaking with investors in a profit call, the CEO Andy Jassy suggested that Amazon can spend more than $ 100 billion in next year: “We spend $ 26.3 billion in Capex in the fourth quarter, and I think that is reasonably representative of what a Capex annualized rate expects in 2025. “
Although the lack of figures does not allow us to quantify the statements in bold, Jassy added: “The vast majority of that expense of Capex is in AI for AWS.”
It is not just Amazon that seeks to increase its capital expenditure to keep up with the demand for artificial intelligence. Google recently revealed that I would spend $ 75 billion this year, with Microsoft ready to invest $ 80 billion.
It is not surprising that Amazon investments far exceed their key hyperscaleros rivals: Canalys has its market share in an amazing 33%; Microsoft and Google occupy 20% and 10% of the market, respectively. Last month, Amazon released an investment of $ 11 billion in data centers in the state of Georgia.
The consensus is to invest more will help the AI be more accessible and increase its use cases, therefore, it contributed more money for companies.
