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Amazon has said he will pump about $ 100 billion at his artificial intelligence initiatives this year after the IE -Commerce group reduces concerns for China’s Deepseek and invests heavily in data infrastructure.
Chief Executive Andy Jassy told investors on Thursday that the $ 26bn Amazon spent in the last three months of last year was “reasonable representative” of his quarterly spending plans for 2025.
Most of the investment will be at the Amazon Web Services, which operates the database and offers customers software tools.
Amazon’s mass expenditure plans echo other technology giants, including the alphabet, Microsoft and Meta, which are competing to dominate the rapid growing industry. The groups have stalled with their spending plans despite the last month of Deepseek, which exceeded some of the main models of it, but works at a lower cost.
Jassy said he saw “important demand signals” for his services and products and that the prospect of cheaper and more efficient tools would lead to more customer expenses.
“Companies will spend much less on infrastructure units, and that is very, very useful for their businesses,” he said. “But then they get excited about what they could build… They usually end up spending much more in total.”
Amazon’s planned annual investment will exceed both the alphabet and Microsoft – which have engaged $ 75bn and $ 80bn respectively, and came while marking modest sales growth at the end of 2024.
Seattle-based fourth quarter revenues which includes critical holiday shopping season-increases 10 percent year by year 187.8bn dollars, reaching past $ 187 billion in a noticeable study alpha.
But Amazon said he expected net sales in the current quarter to enter between $ 151 billion and $ 155.5bn, far below the $ 158.5BN forecasts. A strong dollar will knock the first quarter income by $ 2.1 billion, he said.
Company shares, which increased 41 percent in the last 12 months, decreased by up to 7 percent in the trading on Thursday before healing somewhat in a decrease of about 5 percent.
AWS posted a 19 percent increase in sales to $ 28.8 billion, falling slightly less than expectations. Gogo Prent Alphabet and Microsoft both posted disappointing results for their cloud businesses in the fourth trimester, citing capacity restrictions.
Amazon is facing similar difficulties, especially in procurement of components such as motherboard and meeting the energy requirements of products with resource intensity, Jassy said.
Jassy has overseen an effort to reduce costs in recent years, including regulating logistics operations and getting an ax in medium management in an action that aims to ensure that the business can work “as the largest start in the world” .
The Amazon mass to cut the operational costs has facilitated its investments in the capacity of the database.
Beyond his initiatives, Amazon’s large operations of -commerce continued to grow in the fourth trimester in a modest clip. Net sales in its retail division increased by approximately 8 percent year a year. The company’s fast -growing advertising business increased 18 percent to $ 17.3BN.
