"Amazon announced plans to spend $200bn on artificial intelligence and robotics this year, the latest tech giant to vow fresh enormous investments in the artificial intelligence arms race. The news of the investment comes one day after the Washington Post, owned by Amazon founder Jeff Bezos, announced it was cutting approximately a third of employees. Amazon also reported $213bn in revenue on Thursday. The fourth quarter earnings of the ecommerce and cloud computing giant came in slightly below Wall Street estimates even as sales and growth surged."
"Amazon will increase capital spending to $200bn this year from $125bn, CEO Andy Jassy said in a press release. Wall Street analysts were expecting spending to rise to around $147bn, according to FactSet. With such strong demand for our existing offerings and seminal opportunities like AI, chips, robotics, and low earth orbit satellites, we expect to invest about $200 billion in capital expenditures across Amazon in 2026, and anticipate strong long-term return on invested capital, Jassy said."
Amazon plans to raise capital spending to $200bn, up from $125bn, to pursue growth in artificial intelligence, chips, robotics and low-earth-orbit satellites. Fourth-quarter revenue rose 14% to $213.4bn, with net income of $21.2bn ($1.95 per share). AWS revenue increased 24% to $35.6bn, the fastest growth in 13 quarters. Advertising revenue grew 22%. Analysts had expected slightly higher earnings per share and revenue. The investment commitment follows a Washington Post announcement of roughly one-third staff cuts and adds to substantial AI-related spending among major cloud and tech firms.
Read at www.theguardian.com
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