(Bloomberg) – warned Amazon.com Inc. Investors that they may face capabilities in the cloud computing department despite their plans to invest about $ 100 billion this year, as most of the money tends towards databases, local chips and other equipment to provide artificial intelligence services.
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CEO Andy Jassi, the designer, spends Amazon, Amnesty International, is great to keep the company’s edge in cloud computers services. However, he warned that growth would be “blocked” and suggested that the Amazon may face problems with the delay in obtaining devices and the lack of sufficient electricity.
“It is true that we may grow faster if it was not for some restrictions imposed on the capacity,” Jassi said in a phone call on Thursday after issuing the results of the fourth quarter.
Fears of its opponent are frequented by Microsoft Corp, which said last week that its cloud sales growth was wounded because he had not had enough databases to deal with the demand for its AI products.
Gasi said that the chip supplies – from third parties and Amazon chips design unit – and energy capacity limits the ability of Amazon services to bring new online data centers. He said that these restrictions are likely to be reduced in the second half of 2025.
Amazon spent $ 26.3 billion in capital expenditures in the past three months of 2024, and the vast majority of them went towards the AWS prosecution projects. Jaci told analysts about the call that the amount was a “reasonable representative” of the rate of expenses that the company planned in 2025.
The company stated that AWS revenues jumped 19 % to $ 28.8 billion in this quarter ending on December 31. The third consecutive period was 19 % for the cloud unit. The operating income from the unit was $ 10.6 billion, which exceeds the average projection of $ 10.1 billion.
“The AWS growth has not accelerated, instead identical levels of the third quarter, indicating that the company is facing a challenge through the same types of capacity facing Google and Microsoft’s competitors,” said Sky Canvis, an analyst at Emarkter.
Jassy’s warning over the AWS growth restrictions over a fairly strong quarter, indicating that the company’s main e -commerce and logistical starts from the competition from Walmart Inc. And price discount like Temu and Shein.