Tech heavyweight Amazon said on Monday that it plans to invest upto $50 billion in AI and supercomputing infrastructure which will be used for U.S. government applications.
The investment will break ground in 2026 and is expected to add close to 1.3 Gigawatts of capacity across the following categories of its government clientele: AWS Secret, AWS Top Secret, and AWS GovCloud regions.
“Our investment in purpose-built government AI and cloud infrastructure will fundamentally transform how federal agencies leverage supercomputing,” said AWS CEO Matt Garman.
The update comes as the competitive race among the manginificent seven and the larger foray of AI-based companies tightens, with multiple multi-billion dollar deals—such as Amazon’s $38 billion deal with OpenAI—on the table to build relevant infrastructure to power all kinds of applications in AI.
This has also create a wave of speculation on the figures typically disclosed in the announcements and financial reports. Currently, the debate is focused on whether the metrics being used now such as ARR are indicative of better profits and revenues for companies focused on AI.
Professional investor Michael Burry has questioned as to whether there is real demand for any tangible product being mass-produced in the sector right now.
Nevertheless, Amazon continues to power ahead, with a recent bond issuance worth $15 billion, which is to be used for capital expenditure, acquisitions, and share buybacks.
Source: Yahoo Finance
Amazon shares were trading at $225.16, up by 2.03% at the time of writing.