Amazon said it will continue spending billions of dollars on AI infrastructure and signaled that it's not afraid of cheaper competitors during its call on Thursday.
Amazon reported 4th-quarter earnings on Thursday.
Guidance was light, and the stock dipped in after-hours trading.
Amazon said it'll continue spending billions on AI infrastructure in 2025.
Amazon said it will continue spending billions of dollars on AI infrastructure and signaled that it's not afraid of cheaper competitors during its call on Thursday.
CFO Brian Olsavsky indicated that capital expenditures for 2025 could total just over $100 billion, with most of that going to AWS and Amazon's AI efforts, he said.
He also pushed back on concerns about cheaper AI options, such as DeepSeek, saying that customers will keep spending on the technology.
CEO Andy Jassy said that AWS could grow even faster, if it wasn't hindered by data center capacity constraints.
Amazon is the latest Big Tech company to say it will continue investing in AI. Google, Meta, and Microsoft have all said that they'll keep investing billions to add capacity, even as pressure builds from investors to demonstrate returns on investment.
Amazon's quarterly earnings beat Wall Street's estimates, but lighter-than-expected guidance weighed on the shares in after-market trading. Shares were trading over 4% lower after the company held its earnings call.
The tech giant reported net sales of $187.79 billion, compared to estimates of $187.32 billion, while earnings per share came in at $1.86, compared to $1.50.
Sales in its key Amazon Web Services cloud segment were slightly light at $28.79 billion compared to expectations of $28.82 billion.
Guidance for the current first quarter was also lighter than anticipated, with revenue forecasts of between $151 billion to $155.5 billion, short of Wall Street's expectations of $158.64 billion.
Amazon's stock closed 1% higher on Thursday. The shares are up almost 9% year-to-date, outpacing the S&P 500's 3% gain.
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