- Jassy emphasised aggressive funding in AI throughout a name with analysts.
- Amazon plans $75 billion in capex, and much more in 2025, principally for cloud companies.
Just if you thought Big Tech executives could not get extra bullish on AI, Amazon CEO Andy Jassy upped the ante on Thursday.
During a name with analysts, he described a spread of engaging alternatives for Amazon, and mentioned the corporate will proceed to “aggressively” spend money on AI.
Amazon is on tempo to spend $75 billion on capital expenditures this yr, and it’ll spend much more in 2025, the CEO added. Most of this will likely be for the Amazon Web Services cloud unit.
“We’ve confirmed over time that we are able to drive sufficient working earnings and free money circulation to make this a really profitable return on invested capital enterprise,” Jassy mentioned. “And we anticipate the identical factor will occur right here with generative AI. It is a extremely unusually massive, possibly as soon as in a lifetime kind of alternative.”
Jassy’s remarks got here after Amazon reported third-quarter outcomes that largely beat Wall Street expectations. Amazon’s inventory jumped roughly 6% in after-hours buying and selling.
Amazon has launched numerous new AI companies in recent times, together with Bedrock, an AI improvement instrument, the Rufus purchasing agent, and homegrown AI chips known as Inferentia and Trainium.
Those AI companies are actually on tempo to generate “multi billion {dollars}” in income this yr, and are rising at “triple digit percentages yr over yr,” Jassy mentioned throughout the name. Amazon’s AI enterprise is “rising 3 times quicker at its stage of evolution than AWS did itself,” he added.
AWS’s in-house AI chip enterprise has seen combined outcomes to date on account of Nvidia’s big market share, BI beforehand reported. On Thursday, Jassy mentioned he sees a “likelihood to enhance over time” in that area as a result of AWS’s chips are extra reasonably priced than different choices.
Customers are realizing that AI mannequin coaching and inference “might get expensive” and AWS’s AI chips will be “very compelling” when it comes to its worth, the CEO defined.
In truth, he mentioned buyer demand has been so robust that AWS had to return to its chip manufacturing companions twice to provide extra of its AI chips, Jassy added.
“It’s a really vital alternative for us within the AWS area, and it should be a really vital alternative for purchasers,” Jassy mentioned.
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