Amazon to invest another $20 billion in AI infrastructure; capex reaches $220 billion

American technology giant Amazon announced that it will invest an additional $20 billion in artificial intelligence infrastructure, bringing total capital expenditures for the year to a record $220 billion, the chief executive officer said.

"Even this level of investment will not be sufficient to meet customers' demand for cloud computing resources," Andy Jassy said after the release of the quarterly financial results.

Reasons for the increase

The company had previously planned capital investments of around $200 billion, but due to the accelerated expansion of artificial intelligence and the increased need for data centers and compute capacity, the forecast was raised by another $20 billion. Some of the money will go toward the purchase of servers, networking equipment and the infrastructure that supports the cloud platform.

Through Amazon Web Services (AWS), Amazon remains one of the world's largest providers of cloud services and is in an intense race with competitors Microsoft and Google, who are also investing tens of billions of dollars in developing artificial intelligence infrastructure.

The news was received positively on Wall Street — Amazon's shares rose after the results and the ambitious investment plan were announced. Analysts say the move is a clear signal that the company expects strong growth in demand for AI services in the coming years.

At the same time, the company is carrying out personnel changes: Amazon is dismissing employees from its AI development team, indicating a reorganization of resources and focus in the development and implementation of AI.

Photo: Profimedia