Even after the rise of DeepSeek, a Chinese language startup that developed cutting-edge AI for lower than $6 million in comparison with Anthropic’s $100 million, Amazon shouldn’t be slicing again on its plans for AI spending. As an alternative of downsizing its AI expenditures, the e-commerce big is projecting to spend greater than ever.

On Amazon’s fourth quarter 2024 earnings call on Thursday, CEO Andy Jassy said that the corporate’s $26.3 billion in capital spending for the quarter was “fairly consultant” of what Amazon will spend in every quarter of 2025.

“The overwhelming majority” of that spend “is on AI,” Jassy stated. “We expect just about each software that we all know of immediately goes to be reinvented with AI within it.”

Associated: DeepSeek AI Cost Less Than $6 Million to Develop. Here’s Why Meta and Microsoft Are Justifying Spending Billions.

That signifies that Amazon will spend roughly $105 billion this yr on capital spending, most of which can go in the direction of AI-related bills like advancing its own AI chips. In line with the Wall Street Journal, Amazon’s forecasted spending in 2025 is 35% greater than 2024 and nicely above the $86 billion analysts anticipated.

^{Amazon CEO Andy Jassy. Photographer: David Paul Morris/Bloomberg by way of Getty Photos}

Whereas Amazon’s expenditures are going up, so is its income.

Amazon’s quarterly earnings report was its finest but after a profitable vacation purchasing season, with revenue of $187.8 billion. Amazon’s fourth-quarter report positions it to overtake Walmart as the corporate producing essentially the most income on the S&P 500.

How does Amazon examine to Google, Meta, and Microsoft in AI spending?

The tech giants have all lately introduced their AI-spending plans. Microsoft said it could spend $80 billion on AI infrastructure within the fiscal yr ending in June whereas Google’s mum or dad firm Alphabet stated it could be spending $75 billion. Meta knowledgeable buyers on its most up-to-date earnings name that it could spend $60 billion to $65 billion on AI this yr.

The spending goes in the direction of infrastructure like AI information facilities. Microsoft’s chief monetary officer Amy Hood stated on the company’s latest earnings call that Microsoft’s focus was on “long-lived property that may assist monetization over the following 15 years and past.”

Collectively, Microsoft, Alphabet, and Meta challenge spending at the least $215 billion over their present fiscal years, a forty five% yearly improve per the WSJ.

Amazon continues to be on monitor to be the largest AI spender of the bunch with its $105 billion prediction.

Associated: Microsoft Is on Track to Hit a Major Milestone, the ‘Fastest Business in Our History,’ According to Its CEO