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2w ago

Amazon Commits $100 Billion to AI in 2025, Aiming to Transform Its Future

CEO Andy Jassy outlines plans for AI-driven innovation, cost reduction, and a startup-like corporate culture in his latest shareholder letter.

Amazon's CEO yearns for the tech giant to operate as "the world's largest startup."
Amazon CEO Andy Jassy speaks during an Amazon Devices launch event in New York City, U.S., February 26, 2025. REUTERS/Brendan McDermid/ File Photo
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Overview

  • Amazon's 2025 capital expenditures will total $100 billion, with the majority dedicated to AI infrastructure, including chips, data centers, and generative AI advancements.
  • CEO Andy Jassy predicts AI costs will decrease significantly due to advancements in chip technology and model efficiency, driving broader adoption and long-term financial benefits.
  • The company is integrating generative AI into products like Alexa+, which will feature more intuitive and personalized interactions using advanced AI capabilities.
  • Amazon is restructuring its operations, cutting bureaucracy, and increasing agility to operate like a 'world's largest startup,' with over 375 changes implemented to streamline processes.
  • Jassy emphasizes that these investments mirror the early success of AWS, aiming to position Amazon as a leader in the rapidly evolving AI landscape.