Amazon CEO Andy Jassy announced during the company’s Q4 earnings call that capital expenditures (capex) for 2025 will exceed $100 billion, a sharp increase from $78 billion in 2024.
The “vast majority” of this spending will fuel AI expansion at Amazon Web Services.
Despite speculation that AI costs would plummet after DeepSeek’s launch, Big Tech is showing no signs of scaling back. Instead, industry giants are ramping up their AI investments—with Amazon leading the charge.
“Sometimes people assume that lowering costs for technology components leads to less spending overall. We’ve never seen that,” Jassy said, comparing AI demand to the early internet and cloud computing boom.
Other tech giants are following suit. Meta plans to spend at least $60 billion on AI in 2025, with CEO Mark Zuckerberg pledging “hundreds of billions” in long-term AI investment. Alphabet increased its 2025 capex by 42% to $75 billion, with CEO Sundar Pichai arguing that lower AI costs will unlock more use cases. Microsoft is allocating $80 billion to AI data centers next year alone. CEO Satya Nadella even referenced Jevon Paradox—the idea that cheaper resources drive higher demand—amid AI pricing debates.
