Amazon Commits $100 Billion to AI Infrastructure in 2025

CEO Andy Jassy outlines transformative AI investments, operational reforms, and long-term cost efficiency in his annual shareholder letter.

Amazon CEO Andy Jassy announced a $100 billion capital expenditure plan for 2025, with the majority allocated to AI-related projects including advanced chips, data centers, and generative AI tools.
Jassy highlighted the introduction of Trainium2 chips, which offer 30-40% better price performance than GPUs, as a key step toward reducing AI costs over time.
The company is undergoing significant cultural and operational changes, including workforce reductions and streamlined decision-making, to enhance agility and innovation.
Amazon's AI strategy aims to reinvent customer experiences across services, with generative AI already integrated into products like the revamped Alexa+ voice assistant.
Jassy emphasized that the high upfront costs of AI infrastructure will yield long-term efficiencies and profitability, drawing parallels to the success of AWS.