Amazon has reaffirmed its commitment to investing heavily in Artificial Intelligence (AI) infrastructure, despite growing competition from cheaper alternatives. In its latest earnings call, CFO Brian Olsavsky stated that capital expenditures for 2025 could reach $100 billion, with most of it allocated to AWS and AI efforts.
The tech giant’s quarterly earnings beat Wall Street estimates, but lighter-than-expected guidance on revenue forecasts weighed on the shares in after-market trading. Amazon reported net sales of $187.79 billion and earnings per share of $1.86, surpassing expectations.
Amazon Web Services (AWS) segment sales were slightly lower than anticipated at $28.79 billion, but the company remains optimistic about its growth prospects. CEO Andy Jassy suggested that AWS could continue to expand rapidly if it wasn’t constrained by data center capacity issues.
The move to invest heavily in AI follows similar commitments from rival tech companies Google, Meta, and Microsoft. Despite investor pressure to demonstrate returns on investment, Amazon is undeterred, with CFO Olsavsky stating that customers will continue to spend on AI technology despite cheaper alternatives emerging.
Source: https://www.businessinsider.com/amazon-earnings-call-report-amzn-stock-live-updates-2025-2