- Amazon’s last quarter CAPEX was $ 26.3 billion last quarter, with growth set to continue
- The company plans to spend big on AI projects in 2025 to keep up with rivals
- Microsoft and Google also spend more on AI
Amazon’s CEO seems to have indirectly revealed that the company is planning to allocate about $ 100 billion to capital costs in 2025, with large parts of the money intended for AI.
The news comes as e-commerce and the cloud computing giant announced its financial results in the fourth quarter and the end of the year.
Amazon revenue for the last three-month period of 2024 increased 10% year-over-year to $ 187.8 billion, increasing its full-year income to $ 638.0 billion, an increase of 11% compared to 2023.
Amazon will invest even more money in 2025
Its Amazon Web Services Cloud Divison, accounted for about 15-17% of its entire income, depending on whether we take a quarterly or annual overview. Both periods experienced 19% increase in years over years.
In a speech with investors on a revenue call, CEO Andy Jassy suggested that Amazon may spent more than $ 100 billion in the coming year: “We spent $ 26.3 billion in CAPEX in the 4th quarter of 2025.”
Although a lack of numbers does not allow us to quantify the bold claims, Jassy added: “The vast majority of this CAPEX consumption is at AI for AWS.”
It is not only Amazon who wants to increase its capital costs to keep up with the demand for artificial intelligence. Google recently revealed that it would spend $ 75 billion this year, with Microsoft set to invest $ 80 billion.
It’s no surprise that Amazon’s investments far exceeds its most important hyperscaler -Rivals – Canalys has its market share on a staggering 33%; Microsoft and Google occupy 20% and 10% of the market respectively. Just last month, Amazon revealed an investment of $ 11 billion in data centers in the state of Georgia.
Consensus is that investment will help more to make AI more accessible and increase use cases, and therefore brings more money for businesses.
