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Amazon Commits $100 Billion to AI Infrastructure in 2025

CEO Andy Jassy outlines transformative AI investments, operational reforms, and long-term cost efficiency in his annual shareholder letter.

Amazon's CEO yearns for the tech giant to operate as "the world's largest startup."
Amazon CEO Andy Jassy speaks during an Amazon Devices launch event in New York City, U.S., February 26, 2025. REUTERS/Brendan McDermid/ File Photo
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Overview

  • Amazon CEO Andy Jassy announced a $100 billion capital expenditure plan for 2025, with the majority allocated to AI-related projects including advanced chips, data centers, and generative AI tools.
  • Jassy highlighted the introduction of Trainium2 chips, which offer 30-40% better price performance than GPUs, as a key step toward reducing AI costs over time.
  • The company is undergoing significant cultural and operational changes, including workforce reductions and streamlined decision-making, to enhance agility and innovation.
  • Amazon's AI strategy aims to reinvent customer experiences across services, with generative AI already integrated into products like the revamped Alexa+ voice assistant.
  • Jassy emphasized that the high upfront costs of AI infrastructure will yield long-term efficiencies and profitability, drawing parallels to the success of AWS.