Amazon has warned investors that it may struggle to keep up with the growing demand for its cloud computing services, despite plans to invest $100 billion in 2025. The company’s CEO, Andy Jassy, aims to make Amazon a leader in AI services, but faces challenges securing sufficient hardware and electricity to meet the increasing demand.
Cloud unit sales have increased by 19% for the third consecutive quarter, demonstrating the growing importance of Amazon’s cloud computing business. However, the rapid expansion poses risks if the company cannot scale its operations efficiently.
Amazon plans to allocate most of its $100 billion investment towards data centers, in-house chips, and other equipment necessary for providing AI services. Despite this significant investment, Jassy warned that growth will be “lumpy” due to these challenges.
Source: https://www.bloomberg.com/news/articles/2025-02-06/amazon-projects-profit-missing-estimates-on-rising-ai-spending