Saudi Press

Saudi Arabia and the world
Tuesday, Jul 01, 2025

Amazon is spending less on warehouses — and more on AI and its cloud business

Amazon is spending less on warehouses — and more on AI and its cloud business

Amazon is competing hard in the AI arms race. It says it's got the resources to help customers deploy the technology and is investing in even more.
Amazon is doubling down on investing in artificial intelligence as it spends less on warehouses and other parts of its logistics infrastructure that grew sharply in the wake of the pandemic.

"On our core fulfillment and in transportation areas, we actually are spending less year-over-year, and those estimates are going down," said Brian Olsavsky, Amazon's chief financial officer, in a call with analysts on Thursday. "And we are adding more dollars for large language models and generative AI."

"So we're creating some space in our fulfillment and transportation number that's being repurposed over to AWS," he said, referring to Amazon Web Services, which provides AI and machine learning services to unicorn customers including Stability AI and Hugging Face.

The company spent some $58.3 billion in capital expenditures last year, according to Amazon's 2022 annual report, which noted that the amount showed the company's emphasis on developing its "technology infrastructure."

Amazon CEO Andy Jassy echoed the company's commitment to AI, saying the e-commerce giant would be among the few companies to prioritize developing large language models, the technology behind generative AI tools like chatbots.

"If you look at the really significant leading large language models, they take many years to build, and many billions of dollars to build," he told analysts Thursday. "And there will be a small number of companies that want to invest that time and money, and we'll be one of them at Amazon."

Jassy added that he believed that generative AI tools that assist coders would be some of the most "compelling," and that Amazon also aspired to develop the "world's best personal assistant."

Referencing Amazon's voice assistant device Alexa, he said, "we've had a large language model underneath it, but we're building one that's much larger and much more generalized and capable."

"I think that's going to really rapidly accelerate our vision of becoming the world's best personal assistant," he added.

Amazon's stock jumped more than 10% in after-hours trade, but surrendered those gains by the end of the company's conference call, when Jassy said companies are being "cautious in their spending in this uncertain time" on cloud services. Still, the stock is up more than 25% so far this year.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
Black Box Recovered from Air India Crash Site
×