The Strategist

Amazon to invest $100 billion in AI over next decade

07/01/2024 - 03:20

The Wall Street Journal reported that Amazon intends to invest over $100 billion in data center infrastructure over the course of the next ten years.

Javier Larrea
Javier Larrea
Amazon intends to spend over $100 billion on data center infrastructure over the course of the next ten years, however the source of the information is not mentioned. The publication claims that because cloud computing and artificial intelligence technology are now more crucial to Amazon's expansion than its network of retail warehouses, the corporation will now allocate more funds to them.

John Felton, CFO of Amazon Web Services (AWS), which manages Amazon's cloud business, compares investing in artificial intelligence now to creating a massive delivery network decades ago. Marc Wulfraat, President of MWPVL International, noted that Amazon aims to open at least 216 new data center facilities for the next few years. 

Amazon's overall capital expenditures have decreased in 2023 as a result of its reduced spending on fulfillment and shipping, according to the publication. In the meantime, investment on infrastructure increased, mostly on AWS.