Despite all the buzz last week that Deepseek would warn in an era of his lower budgets, has a zero sign that the Big Tech is slowing down. On the contrary, they are growing things.
Amazon is the latest technology giant to announce a massive plan of expenditure, with over $ 100 billion in estimated capital expenses for 2025. When calling the fourth profits of Amazon on Thursday.
(More specifically, Jassy said Capex expenses of Q4 2024 of $ 26.3 billion “is a reasonable representative” what to wait on an annual basis in 2025. Multiply that quarter of four expenses receives a 105.2 billion dollars.
This is a large jump from $ 78 billion in Capex that Amazon spent in 2024.
Amazon made aside concerns about him becoming free enough to hurt her income. Instead, Jassy said lower prices would simply lead to increased demand for him. And AWS, who has that Galore’s offers, stands to benefit, he argued.
“Sometimes people make the assumption that if you are able to reduce the cost of any type of technology component … which somehow it leads to less total expenses in technology. We have never seen the case,” Jassy said, Comparing the boom in the request of the first days of the Internet and the Cloud.
Other major technology companies are making the same point this season of profits while concerns increase for their big expenses.
Meta Director General Mark Zuckerberg stated last week that the company will spend “hundreds of billions” on it in the long run, citing increased demand for conclusions in billions of its users. Meta is scheduled to spend at least $ 60 billion in Capex in 2025, mostly in it.
Meanwhile, the alphabet just raised its Capex for 2025 with a 42% sail to $ 75 billion, with CEO Sundar Pichai justifying costs saying that lowering it “will make more cases possible. “
And Microsoft announced last month that it would spend $ 80 billion in it only in 2025.
The Director General of Microsoft Satya Nadella has even twes the Wikipedia page for Jevons Paradox (the concept in economics that the lowest prices leads to increased demand) the right while the Discussion Deepseek was hot.
If Jevons Paradox Pans for Big Tech this time remains to be seen. But for now, there are still no signs of deceleration of he’s expenses.
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