Amazon’s $200bn AI Push Amid Layoffs

By Staff, Agencies

Amazon has announced plans to invest $200 billion in artificial intelligence, robotics, and related technologies over the coming year, marking one of the largest single-year capital spending commitments in the intensifying global AI race.

The announcement came just one day after the Washington Post, owned by Amazon founder Jeff Bezos, revealed plans to cut roughly a third of its workforce, highlighting the contrast between massive technology investment and media-sector layoffs.

The spending pledge accompanied Amazon’s fourth-quarter earnings report, which showed strong revenue growth but slightly missed Wall Street expectations.

The company reported quarterly revenue of $213.4 billion, up 14% from $187.8 billion a year earlier.

Net income reached $21.2 billion, or $1.95 per share, compared with $20 billion, or $1.86 per share, in the same period last year. Analysts surveyed by FactSet had forecast earnings of $1.97 per share on revenue of $211.4 billion.

Amazon plans to increase capital expenditure to $200 billion this year, up from $125 billion previously. Analysts had expected spending to rise to about $147 billion.

Chief executive Andy Jassy said strong demand for existing services and emerging opportunities in AI, chips, robotics, and low-earth-orbit satellites drove the decision.

He added that the company anticipates strong long-term returns on its expanded investment strategy.

Amazon also reported its fastest growth in Amazon Web Services revenue in more than three years, with cloud sales rising 24% to $35.6 billion.

Advertising revenue increased 22%, underscoring continued expansion across its core business segments.