Amazon, the e-commerce giant, has announced that it will invest approximately $100 billion in artificial intelligence initiatives by 2025. With this move, the company surpasses Google (Alphabet), committing $75 billion, and Microsoft, which will invest $80 billion.

Amazon has disclosed that it will invest around $100 billion in artificial intelligence initiatives this year.

LOW COSTS OF DEEPSEEK DIDN’T ALTER PLANS

Despite concerns about the China-based DeepSeek, the e-commerce giant continues to make significant investments in its data infrastructure.

Released last month, DeepSeek, though showing better performance than some leading artificial intelligence models and operating at lower costs, has not deterred major technology companies from their investment plans.

SPENT $26 BILLION IN LAST THREE MONTHS OF LAST YEAR

The company’s CEO, Andy Jassy, stated to investors on Thursday that the $26 billion taken by Amazon in the final three months of last year reflected a “reasonable representation” of their three-month spending plans for 2025.

This amount encompasses Amazon’s overall business operations, including its retail operations.

The majority of investments will be for Amazon Web Services (AWS), which operates data centers and offers software tools to customers.

Amazon’s massive artificial intelligence investments mirror the spending by other technology giants like Alphabet, Microsoft, and Meta.

These companies are fiercely competing to establish dominance in the rapidly growing artificial intelligence sector.

OUTPACING GOOGLE AND MICROSOFT

Amazon’s annual investment plan outpaces Alphabet, which has committed to $75 billion in investments, and Microsoft, which will spend $80 billion. This declaration came at a time when Amazon experienced modest sales growth by the end of 2024.

$187.8 BILLION REVENUE ANNUALLY

In the fourth quarter of 2024, Amazon’s revenues increased by 10% annually, reaching $187.8 billion, including the holiday shopping season. This figure slightly exceeded the market’s expectation of $187 billion.

However, the company announced a net sales forecast ranging from $151 billion to $155.5 billion for the current quarter, falling short of the $158.5 billion estimate.

RISEN BY 41% IN THE LAST YEAR

Amazon shares, which have gained 41% in the past 12 months, experienced a drop of up to 7% in after-hours trading on Thursday, but later recovered to close the day with a loss of about 5%. AWS sales rose by 19% to $28.8 billion, slightly below expectations.

Alphabet, Google’s parent company, and Microsoft had delivered disappointing results in the fourth quarter due to capacity issues in cloud services.