Big Tech
Amazon, Like Microsoft, Says It Can’t Keep Up With AI Demand
- Company likely to invest $100 billion in 2025 capital expenses
- Cloud unit sales increase 19% for the third straight quarter
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Amazon.com Inc. warned investors that it could face capacity constraints in its cloud computing division despite plans to invest some $100 billion this year, with most of the money going toward data centers, homegrown chips and other equipment to provide artificial intelligence services.
Chief Executive Officer Andy Jassy, determined to turn Amazon into an AI supermarket, is spending big to retain the company’s edge in cloud-computing services. Still, he warned growth would be “lumpy” owing to challenges securing sufficient hardware and electricity.