Amazon.com Inc. cautioned investors about potential capacity limitations in its cloud computing division, despite plans to invest $100 billion this year, primarily in data centers, custom chips, and AI infrastructure. CEO Andy Jassy, aiming to establish Amazon as the leading AI provider, acknowledged that supply chain bottlenecks and power constraints could impede growth.
Amazon's generative AI-powered shopping assistant, known as Rufus, appears on a computer monitor.
“It is true we could be growing faster were it not for some of the constraints on capacity,” Jassy said on a conference call Thursday after the release of fourth-quarter results. Amazon spent $26.3 billion in capital expenditures in the last three months of 2024, the vast majority of which went toward AI-related projects within AWS. Jassy told analysts on the call that the amount was “reasonably representative” of the rate of outlays the company planned to make in 2025.
Jassy’s warning on AWS growth constraints overshadowed a fairly strong holiday quarter, suggesting the company’s main e-commerce and logistics business is fending off competition from Walmart Inc. and discount upstarts like Temu and Shein.
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