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2w ago

Amazon Commits $100 Billion to AI Investments for 2025

CEO Andy Jassy outlines plans for AI-driven transformation, emphasizing cost reduction, operational agility, and long-term growth.

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 plans to allocate the majority of its $100 billion capital expenditure for 2025 to AI-focused projects, including data centers, in-house chips, and AI-enhanced products.
  • CEO Andy Jassy highlighted the importance of aggressive investment in AI as a 'once-in-a-lifetime reinvention' to maintain competitive advantage and improve customer experiences.
  • The company is leveraging its Trainium2 chips, which offer 30-40% better price performance than current GPU-powered solutions, to reduce AI infrastructure costs.
  • Operational restructuring continues, with over 27,000 jobs cut since 2022 and over 375 changes implemented to reduce bureaucracy and foster a startup-like culture.
  • Amazon is also diversifying its portfolio with investments in satellite technology under Project Kuiper and healthcare ventures like Amazon Pharmacy and One Medical.