Amazon Intends To Spend Over $100 Billion On Ai This Year. Here's How It Compares To Google, Meta, And Microsoft.

Even aft nan emergence of DeepSeek, a Chinese startup that developed cutting-edge AI for small than $6 cardinal compared to Anthropic's $100 million, Amazon is not cutting backmost connected its plans for AI spending. Instead of downsizing its AI expenditures, nan e-commerce elephantine is projecting to locomotion overmuch than ever.

On Amazon's 4th 4th 2024 net telephone connected Thursday, CEO Andy Jassy stated that nan company's $26.3 cardinal successful superior spending for nan 4th was "reasonably representative" of what Amazon will locomotion successful each 4th of 2025.

"The immense majority" of that locomotion "is connected AI," Jassy said. "We deliberation virtually each exertion that we cognize of coming is going to beryllium reinvented pinch AI incorrect of it."

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

That intends that Amazon will locomotion astir $105 cardinal this twelvemonth connected superior spending, astir of which will spell towards AI-related expenses for illustration advancing its ain AI chips. According to nan Wall Street Journal, Amazon's forecasted spending successful 2025 is 35% higher than 2024 and bully supra nan $86 cardinal analysts expected.

Amazon CEO Andy Jassy. Photographer: David Paul Morris/Bloomberg via Getty Images

While Amazon's expenditures are going up, truthful is its revenue.

Amazon's quarterly nett study was its champion yet aft a successful picnic shopping season, pinch gross of $187.8 billion. Amazon's fourth-quarter study positions it to overtake Walmart arsenic nan institution generating nan astir gross connected nan S&P 500.

How does Amazon comparison to Google, Meta, and Microsoft successful AI spending?

The tech giants personification each precocious announced their AI-spending plans. Microsoft stated it would locomotion $80 cardinal connected AI infrastructure successful nan fiscal twelvemonth ending successful June while Google's genitor institution Alphabet said it would beryllium spending $75 billion. Meta informed investors connected its astir caller nett telephone that it would locomotion $60 cardinal to $65 cardinal connected AI this year.

The spending goes towards infrastructure for illustration AI accusation centers. Microsoft's main financial serviceman Amy Hood said connected nan company's latest nett telephone that Microsoft's attraction was connected "long-lived assets that will support monetization complete nan adjacent 15 years and beyond."

Collectively, Microsoft, Alphabet, and Meta task spending astatine slightest $215 cardinal complete their existent fiscal years, a 45% yearly summation per nan WSJ.

Amazon is still connected measurement to beryllium nan biggest AI spender of nan bunch pinch its $105 cardinal prediction.

Related: Microsoft Is connected Track to Hit a Major Milestone, nan 'Fastest Business successful Our History,' According to Its CEO