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Despiteall the buzzlast calendar week that DeepSeek would herald in an era of lower AI budget , there is zero sign that Big Tech is slowing down . Instead , they ’re ramp thing up .
Amazon is thelatest tech giantto herald a massive AI outlay architectural plan , with well over $ 100 billion in predict capital expenditures for 2025 . The “ vast majority ” of that $ 100 billion will go toward AI capabilities for its cloud division AWS , CEO Andy Jassy said during Amazon ’s fourth - quarter earnings call Thursday .
( More specifically , Jassy said Q4 2024 ’s capex spending of $ 26.3 billion “ is middling representative ” of what to expect on an annualized basis in 2025 . Multiplying that quarterly spend by four gets a cool $ 105.2 billion . )
That ’s a huge leap from the $ 78 billion in capex that Amazonspent in 2024 .
Amazon brushed aside business organisation about AI getting so cheap that it would harm its tax revenue . Instead , Jassy said lower price would just lead to increase demand for AI . And AWS , which has AI oblation galore , stands to gain , he argue .
“ Sometimes people make the assumption that if you ’re able to decrease the cost of any eccentric of engineering component … that somehow it leads to less total spend in technology . We ’ve never seen that to be the case , ” Jassy said , compare the boom in AI need to the former days of the cyberspace and swarm .
Other Big Tech companies are make believe the same point this earnings season as worries mount about the returns on their skyrocketing AI expenses .
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Meta CEO Mark Zuckerbergdeclared last weekthe company would spend “ 100 of zillion ” on AI in the long terminal figure , reference rising inference demand across its billions of drug user . Metais slatedto spend at least $ 60 billion on capex in 2025 , mostly on AI .
Meanwhile , Alphabet justboostedits capex for 2025 by a whopping 42 % to $ 75 billion , with CEO Sundar Pichai justifying the disbursal by order that decreased AI costs “ will make more use suit feasible . ”
And Microsoftannouncedlast month that it would expend $ 80 billion on AI data centers in 2025 alone .
Microsoft CEO Satya Nadella even tweet the Wikipedia Sir Frederick Handley Page for Jevons Paradox ( the conception in economics that lower prices leads to increase need ) right as the DeepSeek treatment was inflame up .
Jevons paradox strikes again ! As AI gets more efficient and approachable , we will see its use skyrocket , turn it into a commodity we just ca n’t get enough of.https://t.co/omEcOPhdIz
Whether Jevons Paradox pans out for Big Tech this time remains to be attend . But for now , there ’s no star sign of any AI outlay lag just yet .
