Amazon plans to invest $100 billion this year in a "once-in-a-lifetime" AI opportunity.

Amazon has reported that its capital expenditure reached $26.3 billion in the last quarter, and this trend of investment is expected to continue. The company plans to allocate a significant portion of its resources to artificial intelligence projects by 2025, aiming to maintain its competitiveness against other major companies such as Microsoft and Google, which have also increased their investments in this area.

During a call with investors to discuss the financial results for the fourth quarter and the full year, Amazon CEO Andy Jassy hinted that the company could allocate approximately $100 billion in capital expenditures in 2025, highlighting that a large portion of this amount would be focused on artificial intelligence projects for its Amazon Web Services (AWS) division. In the last quarter of 2024, Amazon's revenue grew by 10% compared to the previous year, reaching $187.8 billion, bringing its total annual revenue to $638.0 billion, an 11% increase from 2023.

AWS, for its part, significantly contributed to the overall revenue, accounting for between 15% and 17% of total revenues, with year-over-year increases of 19% in both quarterly and annual terms. Jassy mentioned that the $26.3 billion spend for the fourth quarter can serve as a benchmark for expectations of annualized spending in 2025, emphasizing that the majority will be directed toward artificial intelligence.

Not only is Amazon planning to increase its capital spending. Google has announced that it will invest $75 billion this year, while Microsoft expects to allocate $80 billion. Despite these significant figures, Amazon's investments are projected to notably surpass those of its competitors in the market, where Amazon holds a 33% market share compared to Microsoft’s 20% and Google's 10%. Recently, Amazon also disclosed an investment of $11 billion in data centers in the state of Georgia. Increasing these investments is expected to make artificial intelligence more accessible and diversify its applications, which could translate into considerable revenue growth for companies.