Amazon Follows Google, Meta, and Microsoft With Plans To Boost Spending on AI | Global News Avenue

Amazon (Amzn) said it is expected to spend more than $100 billion Capital Expenditure This year, it’s the latest tech giant, saying it’s ramping up investments AI Infrastructure.

$26.3 billion Amazon spent on capital expenditures In the fourth quarter CEO Andy Jassy said on the company’s revenue call that it was a “reasonable representation” of the rates it expected to spend in 2025. This will make Amazon’s capital expenditure exceed $100 billion throughout the year, with the “bigest majority” of which will be spent on AI Amazon Web ServicesHe said.

This comes after Amazon recently launched the latest model of Trainium2. The company is Work with anthropomorphismthe startup company behind Claude Big language modelto build a server that contains hundreds of thousands of Trainium2 chips, with significantly higher computing power than the current Claude model. Looking ahead, Jassy said Amazon expects to preview the more powerful Trainium3 chip later this year.

Amazon’s plan to spend on AI follows similar moves from its large technology peers. Just earlier this week, Google Parents Letters (GOOGL) Forecast $75 billion in capital expenditure This year, to support the expansion of its AI capabilities. Last week, meta(Yuan) Indicates that it plans to invest $60 billion to $65 billion This year, Microsoft (MSFT) said it plans to spend $80 billion on infrastructure in fiscal year 2025.

“We’re all learning from each other,” Jassie said Thursday. DeepSeekadding that Amazon has added a DeepSeek model to its cornerstone and Sagema manufacturer development platform. “You have seen and will continue to see a lot of leaps between us.”

DeepSeek’s rapid rise has caused concerns recently asserting that American companies spend on AI, which recently claimed to develop competitive AI models. However, Bank of America analysts said the development could be “AI’s donor moment“With the growing competition, we have made our super ratings like Amazon show greater urgency and increase investment rather than retreat.

Amazon’s stock fell 4% in Thursday’s expansion trading after the company’s earnings call and outlook unestimated. The stock has risen 40% over the past 12 months.