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Amazon said that she would pump about $ 100 billion into artificial intelligence initiatives this year, as the e -commerce group ignores concerns from Dibsic in China and invested extensively in data infrastructure.
CEO Andy Jassi told investors on Thursday that the 26 billion Amazon spent in the last three months of last year was “reasonably represented” of the 2025 quarterly spending plans.
The largest part of the Amazon Web Services will be, which runs data centers and provides customer software tools.
Amazon’s huge spending plans are planning to resonate other technology giants, including Alphabet, Microsoft and Meta, which compete to control fast -growing industry. The groups were hung on their spending plans despite the appearance of last month of Deepseek, which surpassed some of the leading AI models but they work at a lower cost.
Jassi said he saw “important signals” for artificial intelligence services and products and that the possibility of cheaper and more efficient tools would lead to more customer spending.
He said: “Companies will spend much lower for each unit of infrastructure, and this is very useful for their business.” “But then they feel enthusiastic about what they can build. They usually end up spending a lot in total.”
Amazon’s annual investment will outperform Alphabet and Microsoft – who committed 75 billion dollars and $ 80 billion, respectively – and came because it achieved modest growth in sales at the end of 2024.
The Syattle-based Group Fourth revenue-which includes the critical shopping season-increased by 10 percent year on an annual basis to $ 187.8 billion, touched on pre-$ 187 billion estimates in a visible alpha survey.
But Amazon said that she expects net sales in the current quarter between 151 billion dollars and 155.5 billion dollars, which is much less than expectations of $ 158.5 billion. She said that the strong dollar will strike the revenues of the first quarter by $ 2.1 billion.
The shares of the company, which increased by 41 percent in the past 12 months, have decreased to 7 percent in the hours after trading hours on Thursday before it recovered somewhat to a decrease of about 5 percent.
AWS recorded a 19 percent increase in sales to $ 28.8 billion, slightly lower than expectations. Google Parent Alphabet and Microsoft published disappointing results for their cloud companies in the fourth quarter, citing capacity restrictions.
Jassi said that Amazon has similar difficulties, especially in buying components such as motherboards and meeting energy requirements for intense resource intelligence products.
Jassy has supervised efforts to reduce costs in recent years, including simplifying logistical processes and taking the ax to the middle management in a move aimed at ensuring that the company works “like the largest startup in the world.”
Amazon’s step has facilitated the reduction of operating expenses of its investments in the ability of the data center.
In addition to artificial intelligence initiatives, the wide e -commerce operations of Amazon continued to grow in the fourth quarter in a modest clip. The net sales in the retail department grew about 8 percent on an annual basis. Revenue increased from the company’s rapidly growing advertising by 18 percent to $ 17.3 billion.