AIvengo > Reviews > Amazon allocates unprecedented $100B for AI

Amazon allocates unprecedented $100B for AI

According to Amazon CEO Andy Jassy, “the vast majority” of the $100 billion capital expenditure will be directed toward developing AI capabilities for the AWS cloud division. The forecast is based on fourth-quarter 2024 spending of $26.3 billion, which annualizes to $105.2 billion – a significant increase from $78 billion in 2024.

Technology leaders reject concerns that AI cost reduction could harm their revenues. “We’ve never seen a reduction in the cost of a technology component lead to a decrease in overall technology spending,” Jassy noted, comparing the current AI boom to the early days of internet and cloud technologies.

Microsoft CEO Satya Nadella supported this position, citing Jevons paradox – an economic concept suggesting that price reductions lead to increased demand. Technology giants are confident that reducing AI costs will enable its application in new use cases, leading to overall market growth.

Major technology companies are also increasing AI investments:

Meta plans to spend “hundreds of billions” long-term, with at least $60 billion in 2025.
Alphabet is increasing capital expenditure by 42% to $75 billion.
Microsoft is investing $80 billion in AI data centers alone.

Autor: AIvengo

For 5 years I have been working with machine learning and artificial intelligence. And this field never ceases to amaze, inspire and interest me.

IMF chief economist compared AI boom to dotcom bubble

IMF chief economist Pierre-Olivier Gourinchas stated that the world has already traveled halfway to a burst AI bubble and a new financial crisis.

Researchers cracked 12 AI protection systems

You know what researchers from OpenAI, Anthropic, Google DeepMind and Harvard just found out? They tried to break popular AI security systems and found a bypass almost everywhere. They checked 12 common protection approaches. From smart system prompt formulations to external filters that should catch dangerous queries.

OpenAI has 5 years to turn $13 billion into trillion

You know what position OpenAI is in now? According to Financial Times, the company has 5 years to turn 13 billion dollars into a trillion. And here's what it looks like in practice.

Sam Altman promises to return humanity to ChatGPT

OpenAI head Sam Altman made a statement after numerous offline and online protests against shutting down the GPT-4o model occurred. And then turning it on, but with a wild router. I talked about this last week in maximum detail. Direct quote from OpenAI head.

AI comes to life: Why Anthropic co-founder fears his creation

Anthropic co-founder Jack Clark published an essay that makes you uneasy. He wrote about the nature of modern artificial intelligence, and his conclusions sound like a warning.