Amazon spent $26.3 billion in capital expenditures during the fourth quarter of 2024, and that is “reasonably representative” of what it plans to spend each quarter of 2025, CEO Andy Jassy said during the company’s Q4 earnings call on Thursday. The “vast majority” of that spending will reportedly go towards Amazon Web Services and AI development.
Thursday’s announcement comes amid a concerted push by nearly every major player in the AI space to invest heavily in AI in the new year. Earlier in the week, Alphabet CEO Sundar Pichai told investors that Google plans to spend about $75 billion in AI capital expenditures this year while Meta will likely spend between $60 billion and $65 billion. For its part, Microsoft has committed $80 billion to AI capital expenditures in 2025.
Amazon revealed in December that it is partnering with Anthropic, maker of the Claude large language model, to train the company’s next generation of LLMs on its newly released Trainium2 processors. To that end, Amazon is currently constructing a data center housing hundreds of thousands of the chips. Per Jassy, the company plans to reveal the Trainium2’s successor, Trainium3, later this year.
“We’re all learning from one another,” Jassy said of Amazon’s competition Thursday. “You have seen and will continue to see a lot of leapfrogging between us.”
These investments come as the American AI industry reels from DeepSeek’s release, an AI that offers comparable performance to OpenAI’s leading reasoning models for a fraction of the cost and energy requirements. While Amazon’s stock has risen 40% over the past year, its value slid 4% following Thursday’s earnings call.
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