Amazon CEO Jassy defends $200 billion AI spend: "We're not going to be conservative"
Amazon shares have struggled so far this year as investors question the company's aggressive AI spending plans.
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Amazon CEO Andy Jassy speaks during a keynote address at AWS re:Invent 2024, a conference hosted by Amazon Web Services, at The Venetian Las Vegas on December 3, 2024 in Las Vegas, Nevada.
Noah Berger | Getty Images
Amazon CEO Andy Jassy on Thursday released his annual shareholder letter and once again made the case to Wall Street investors that the company's huge investments in artificial intelligence are worthwhile.
"We're not going to be conservative in how we play this — we're investing to be the meaningful leader, and our future business, operating income, and [free cash flow] will be much larger because of it," Jassy wrote.
The company disclosed in February that it expects to spend roughly $200 billion this year on capital expenditures, with the lion's share going toward AI infrastructure, including data centers, chips and networking equipment.
That's more than any of its tech peers, and a nearly 60% increase from last year.
Amazon shares have struggled so far this year as investors question the company's aggressive AI spending plans and grow increasingly impatient about when the investments will pay off. The stock has slid more than 4% year to date.
Amazon year-to-date stock chart.
