In 2024, Amazon's capital spending reached $83 billion, reflecting its aggressive strategy to invest in AI amid growing competition from firms like OpenAI and Google. CEO Andy Jassy has highlighted that increased investments in generative AI are driving this growth. Notably, in Q4 2024, capital expenditure was $26.3 billion, setting expectations for 2025. The company's initiatives include expanding data centers and hardware to support innovative AI products. However, despite reporting a revenue increase to $187.79 billion, Amazon's disappointing outlook on sales led to a decline in its stock price.
Amazon's significant capital investment in AI, driven by the competitive landscape and its growth in AWS, highlights its commitment to generative AI and data infrastructure.
Despite Amazon's strong quarterly results, the company issued a disappointing outlook, forecasting lower-than-expected sales, which led to a decrease in stock prices after hours.
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