Amazon announces massive AI investment plan, with capital expenditures exceeding $100 billion by 2025

Although there were many discussions last week that DeepSeek could usher in an era of "reducing AI costs," tech giants seem to have no signs of reducing their spending and instead are accelerating their investment pace.

Amazon plans to invest $100 billion

Amazon has become the latest tech giant to announce a large-scale AI investment plan, with capital expenditures expected to far exceed $100 billion by 2025. Amazon CEO Andy Jassy stated during the fourth quarter earnings conference call last Thursday (February 1) that the "vast majority" of the funds will be invested in AI related technologies for AWS (Amazon Web Services).

Andy Jassy Further explanation, the capital expenditure for the fourth quarter of 2024 reached $26.3 billion. If calculated based on this, the total expenditure for the year will reach $105.2 billion in 2025, an astonishing increase compared to $78 billion in 2024.

Tech giant AI investment continues to rise

Amazon is not worried that AI technology becoming cheaper will affect the company's revenue. Andy Jassy argues that the decrease in AI costs will stimulate market demand, and AWS will benefit from offering a variety of AI products. He compared this wave of AI demand to the early trends in the development of the internet and cloud computing.

Other tech giants also hold the same view and have announced large-scale AI investment plans during the earnings season

Meta CEO Mark Zuckerberg announced last week that the company's long-term AI investments will reach "hundreds of billions of dollars" and plans to invest at least $60 billion in capital expenditures by 2025, with the majority going towards AI related infrastructure. Google's parent company Alphabet has also announced a 42% increase in capital expenditures to $75 billion by 2025. CEO Sundar Pichai believes that the decrease in AI costs will enable more application scenarios and further expand market demand. Microsoft announced as early as January that it would invest $80 billion in AI data centers by 2025.

It is worth mentioning that, DeepSeek While the discussion was heated, Microsoft CEO Satya Nadella also shared a Wikipedia page on "Jevons Paradox" on social media, suggesting that the reduction in AI costs would actually drive higher demand. At present, AI It remains to be seen whether the 'Zhuwen paradox' in the field can be fully realized, but what is certain is that the AI spending of tech giants has not decreased, but continues to increase.

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