Amazon has unveiled ambitious plans to allocate $200 billion towards artificial intelligence and robotics investments for 2026, with CEO Andy Jassy stating the company aims to reap strong long-term returns on its capital expenditures. The move comes as Amazon's parent-owned Washington Post cuts nearly a third of its workforce just one day prior.
Despite this, Amazon reported revenue of $213.4 billion in the fourth quarter, representing a 14% increase from the same period last year. Sales and growth have surged, but Wall Street analysts had expected slightly higher earnings of $1.97 per share.
Amazon's capital expenditure plan has been scaled up to $200 billion for the fiscal year, exceeding initial expectations of around $147 billion. This comes as part of a growing trend among tech giants to invest heavily in artificial intelligence (AI). Amazon is not alone; Microsoft, Alphabet's Google, and Meta are also expected to collectively spend more than $630 billion on AI this year.
The company's cloud computing arm, Amazon Web Services (AWS), saw significant growth with revenue increasing 24% to $35.6 billion. Advertising revenue also rose 22%, providing a boost to the overall earnings figures.
Amazon's CEO Andy Jassy attributed the planned investments to the "strong demand for our existing offerings and seminal opportunities like AI, chips, robotics, and low Earth orbit satellites." However, this news may have been overshadowed by Bezos' recent announcement of cutting nearly a third of the Washington Post workforce, a move that has raised concerns among former employees.
Forbes estimated Bezos' net worth to have decreased by $9 billion following Amazon's disappointing earnings. This slump has led to a 9% decline in Amazon stock prices and a 3.7% decrease in his overall wealth.
Despite this, Amazon reported revenue of $213.4 billion in the fourth quarter, representing a 14% increase from the same period last year. Sales and growth have surged, but Wall Street analysts had expected slightly higher earnings of $1.97 per share.
Amazon's capital expenditure plan has been scaled up to $200 billion for the fiscal year, exceeding initial expectations of around $147 billion. This comes as part of a growing trend among tech giants to invest heavily in artificial intelligence (AI). Amazon is not alone; Microsoft, Alphabet's Google, and Meta are also expected to collectively spend more than $630 billion on AI this year.
The company's cloud computing arm, Amazon Web Services (AWS), saw significant growth with revenue increasing 24% to $35.6 billion. Advertising revenue also rose 22%, providing a boost to the overall earnings figures.
Amazon's CEO Andy Jassy attributed the planned investments to the "strong demand for our existing offerings and seminal opportunities like AI, chips, robotics, and low Earth orbit satellites." However, this news may have been overshadowed by Bezos' recent announcement of cutting nearly a third of the Washington Post workforce, a move that has raised concerns among former employees.
Forbes estimated Bezos' net worth to have decreased by $9 billion following Amazon's disappointing earnings. This slump has led to a 9% decline in Amazon stock prices and a 3.7% decrease in his overall wealth.
when the company just laid off nearly a third of its workforce at the Washington Post? It's like, yeah, we've got strong demand for our existing stuff, but what about all those people who are out of jobs now? 
I get that tech companies gotta keep innovating and growing, but can't they find ways to do it without hurting so many innocent people in the process? 
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. first, they cut nearly a third of the washington post workforce, which is like a major red flag for their employees 
. but then they announce this massive $200 billion investment in AI and robotics? that's like a total 180 
. it's all about being prepared for the future, i guess? 
they're like super serious about AI and robotics investments! i mean, it makes sense cuz we gotta keep up with the times right? 
anyway, let's focus on the bright side - more AI means better tech for all us! 
But for now, it seems like big companies are just throwing money at tech advancements, hoping to make some returns on their investments 
. 200 billion sounds like a lot of cash, but can Amazon really deliver on its promises? Only time will tell...
. And what about the employees who got let go? Did Amazon give them any severance pay or even an out 
. It's like they're putting all their eggs in one basket, hoping to reap huge returns on those investments 
. Maybe Jassy is thinking ahead and wants to stay ahead of the competition 
. The big question is: will these investments pay off in the long run or just end up being another expensive experiment 
?
like they're investing $200 billion into AI and robotics and i'm over here thinking about how my student loan debt is still a thing lol idk if it's smart to spend that much but hey at least the economy is growing and all that 
It's like he's trying to show everyone what it means to truly care about the future of humanity (just kidding). Anyway, I'm surprised Wall Street didn't expect more growth from Amazon considering how much it's growing its services. Maybe they should've factored in some Bezos-style "restructuring" 
personally, i think they should focus on using their existing workforce more efficiently instead of expanding their tech team so much 
and what's with the stock prices dropping after bezos announced his cutbacks? 
shouldn't his fortune just keep growing and growing like a magic beanstalk? 
i mean i'm glad they're focusing on tech investments but u can't just ignore the workers who are losin their jobs 
I feel so bad for them... and poor Jeff Bezos too 
. What do you guys think?