Why Amazon is the Latest Tech Giant to Bet Big on AI

Amazon CEO Andy Jassy has confirmed the company is "investing aggressively" in AI, joining a wave of tech leaders increasing their AI spending.

Andy confirmed on a Q4 2025 earnings call that he expects about US$200bn in capital expenditure across Amazon, with the majority focused on Amazon Web Services (AWS).

"Customers really want AWS core for AI workloads," he explained. "And we are monetising capacity as fast as we can install it.

"We have deep experience understanding demand signals in the AWS business and then turning that capacity into a strong return on invested capital. We are confident this will be the case here as well."

Andy identified AI chips, robotics and low orbit satellites as the main areas of focus. These sectors represent emerging opportunities in infrastructure and automation, where AI can increase efficiency and unlock new applications for businesses and consumers.

He went on: "I passionately believe that every customer experience that we know of today is going to be reinvented. With AI, there are going to be a whole bunch of customer experiences none of us ever imagined that are going to become the norms of how we all operate every day and what we use."

Financial performance

Amazon reported strong financial results for 2025, underlining the ability to fund AI expansion.

• Net income rose to US$77.7bn, compared with US$59.2bn in 2024.
• Operating income jumped to US$80bn, up from US$63.8bn the previous year.
• Net sales increasdd 12% to US$716.9bn, with AWS sales climbing 20% year-over-year to US$128.7bn.

Andy attributed growth to rapid innovation and responsiveness to customer needs: “AWS growing 24% (our fastest growth in 13 quarters); advertising growing 22%; stores growing briskly across North America and international; our chips business growing triple digit percentages year-over-year – this growth is happening because we're continuing to innovate at a rapid rate, and identify and knock down customer problems."

AWS confirmed a host of partnerships over the course of 2025, including with OpenAI, Visa, the NBA, BlackRock, Perplexity, Lyft, United Airlines, DoorDash, Salesforce, the US Air Force, Adobe, Thomson Reuters, AT&T, S&P Global, London Stock Exchange, Accenture, Indeed and HSBC. 

Tech leaders escalate AI investment

Andy is one of several tech executives increasing their focus on AI. Google CEO Sundar Pichai is directing more resources towards AI infrastructure and AI-native cloud offerings, while Meta CEO Mark Zuckerberg is expanding investment in AI transformation.

During Meta’s recent earnings call on 28 January, Mark said: “We had a strong business performance in 2025. Our business also performed very well thanks to record-breaking holiday demand and AI-driven performance gains."

Meta’s results saw the company's share price rise by 6-10% in extended trading following the announcement. The tech and social media giant is expects CapEx to sit between US$115bn and US$135bn in 2026 – potentially almost double the US$72.2bn spent in 2025.

The majority of funding will be directed towards data centres, servers and networking equipment needed to train and deploy increasingly sophisticated AI models.

Mark added: "We are now seeing a major AI acceleration. I expect 2026 to be a year where this wave accelerates even further. As we plan for the future, we will continue to invest very significantly in infrastructure to train leading models and deliver personal superintelligence to billions of people and businesses around the world."

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