Amazon's AI Spending Spree: A $100B+ Bet on the Future

Amazon plans to spend over $100 billion in capital expenditures in 2025, with a significant portion (estimated at over $86 billion) dedicated to building out AI infrastructure for its AWS cloud services. This massive investment reflects Amazon's strong belief in AI and its potential for future growth. While the short-term investment-to-revenue ratio is high, Amazon's financial model projects a substantial long-term return on investment for its AI infrastructure, explaining the company's aggressive approach to the AI market.