Amazon, the e-commerce giant, announced that it will invest approximately $100 billion in artificial intelligence initiatives by 2025. This commitment surpasses Google (Alphabet) and Microsoft, which pledged $75 billion and $80 billion, respectively.

Amazon has disclosed a nearly $100 billion investment in artificial intelligence ventures this year.

COST-EFFECTIVE DEEPSEEK FAILS TO DETER PLANS

The e-commerce giant continues to focus on extensive investments in its data infrastructure despite concerns about the China-based DeepSeek.

Even though recently released DeepSeek outperforms some leading artificial intelligence models and operates at a lower cost, major tech companies have not abandoned their investment plans.

$26 BILLION SPENT IN LAST THREE MONTHS OF LAST YEAR

CEO Andy Jassy mentioned to investors on Thursday that the $26 billion spent in the last three months of the previous year is a “reasonable representation” of their quarterly expenditure plan for 2025.

This figure encompasses Amazon’s overall business operations, including its retail business.

Most of the investments will be directed towards Amazon Web Services (AWS), which operates data centers and provides software tools to customers.

Amazon’s massive artificial intelligence investments mirror the spending patterns of other technology giants like Alphabet, Microsoft, and Meta.

These companies are fiercely competing to establish dominance in the rapidly growing artificial intelligence sector.

SURPASSING GOOGLE AND MICROSOFT Amazon’s annual investment plan surpasses Alphabet, with a commitment of $75 billion, and Microsoft, planning to spend $80 billion. This announcement came at a time when Amazon modestly increased its sales at the end of 2024.

$187.8 BILLION IN REVENUE ANNUALLY In the fourth quarter of 2024, Amazon’s revenues surged by a 10% annual increase to reach $187.8 billion, including the holiday shopping season. This figure slightly exceeded the $187 billion market expectations.

However, the company announced net sales expectations between $151 billion and $155.5 billion for the current quarter, falling short of the $158.5 billion estimates.

41% GROWTH IN THE PAST YEAR

Amazon shares, which gained 41% in the last 12 months, experienced up to a 7% drop in after-hours trading on Thursday but eventually recovered to close the day with around a 5% loss. AWS sales rose by 19%, reaching $28.8 billion, slightly below expectations.

Google’s parent company Alphabet and Microsoft both revealed disappointing results in the fourth quarter due to capacity problems in cloud services.