Amazon Wants to Spend $100 billion on AI in 2025

Mark
AAI
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Amazon is pouring money into AI like never before. The company shelled out $26.3 billion in capital expenses during the last three months of 2024, and CEO Andy Jassy says that’s about what they’ll keep spending each quarter in 2025. Most of that cash is flowing straight into Amazon Web Services (AWS) and AI development.

Every major tech company is locked in an AI spending war, and Amazon is no exception. Microsoft is leading the pack with an eye-watering $80 billion set aside for AI this year. Google isn’t far behind, committing around $75 billion, while Meta plans to drop between $60 billion and $65 billion. With numbers this big, nobody is playing it safe.

Amazon isn’t just throwing money around—it has a strategy. Back in December, the company teamed up with Anthropic, the minds behind the Claude AI model. They’re using Amazon’s latest Trainium2 processors to train the next generation of AI.

A massive data center is already in the works to house hundreds of thousands of these chips. Jassy also confirmed that an upgraded version, Trainium3, is coming later this year.

Competition in AI is ruthless. Jassy admitted, ‘We’re all learning from one another,’ and he’s not wrong. Companies are constantly trying to one-up each other, and Amazon isn’t backing down. But despite the aggressive push into AI, Amazon’s stock took a hit, dropping 4% after the earnings call, even though it’s up 40% over the past year.

The AI industry isn’t just battling over money—it’s fighting to stay relevant. A new player, DeepSeek, is shaking things up. Their AI model delivers performance that rivals OpenAI’s best while using less energy and costing less to run. This unexpected competition could force companies like Amazon to move even faster and spend even more to stay ahead.

With billions pouring into AI and new challengers emerging, the tech giants have no choice but to keep pushing forward—or risk getting left behind.

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Mark is the kind of person who gets way too excited about new software updates and can’t resist taking apart gadgets—just to see if they can put them back together. With years of experience in tech journalism and a love for all things digital, Mark writes about the stories behind the screens, from game-changing innovations to the everyday tech that keeps life running smoothly. Outside of work, they’re the go-to “tech support” for friends and family, whether it’s fixing a printer that won’t cooperate or explaining why Grandma’s laptop keeps showing pop-ups. When Mark isn’t glued to their screen, they’re probably building their dream PC, rewatching sci-fi movies for the hundredth time, or testing a gadget that promises to “change everything.” Spoiler: they’ll let you know if it actually does.