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Amazon expects $100 billion of capex in 2025 on 'once-in-a-lifetime' AI opportunity

1. Amazon plans to increase capital expenditures to $100 billion by 2025. 2. Investment focuses on AI infrastructure to meet growing demand for generative AI. 3. CEO Jassy emphasizes long-term benefits from increased spending on AI. 4. Mixed Q4 results and lower sales projections caused a 4% drop in shares. 5. Other tech giants like Google and Microsoft are also ramping up AI investments.

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FAQ

Why Bullish?

High capital expenditure in AI signifies growth potential, like in previous tech booms.

How important is it?

The substantial investment in AI is critical for Amazon's future competitiveness.

Why Long Term?

Investments may yield substantial returns over time, similar to cloud computing expansion.

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