TechCheck Big Tech digs in on AI Capex amid tariff whiplash 4/10/25
Apr 10, 2025
Amazon and Google are doubling down on AI investments, with both companies advocating for substantial capital expenditures. As tariffs fluctuate, their strategies reveal a commitment to AI as a vital growth pillar. Analysts discuss how these moves echo the practices of established tech giants, signaling a transformation in the landscape of technology. This financial focus indicates a competitive drive to lead in the AI space, even amid economic uncertainties.
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Amazon's AI Strategy
- Amazon's AI strategy, encompassing custom chips, infrastructure, and foundational models, mirrors Google's approach.
- Jassy's emphasis on AI might signal it as Amazon's "fourth pillar," indicating long-term growth potential.
AI Investment Priority
- Amazon CEO Andy Jassy reaffirms commitment to AI spending, echoing Google CEO Sundar Pichai.
- This emphasizes AI's importance, even amidst tariff concerns, positioning it as a potential fourth pillar for Amazon alongside Marketplace, Prime, and AWS.
Amazon's Fourth Pillar
- In 2017, Jeff Bezos, during an Amazon AGM, stated their search for a fourth pillar business.
- He reiterated this during his last shareholder meeting as CEO in 2021, highlighting the high bar for contenders.