Amazon CEO Andy Jassy may have agreed to what Google’s Sundar Pichai said on investing billions in AI

Amazon CEO Andy Jassy, in his annual letter to shareholders, has defended the company’s significant multi-billion dollar expenditures on the development of artificial intelligence (AI) technologies, asserting that such investment is crucial for maintaining a competitive edge in the evolving market.
“If your mission is to make customers' lives better and easier every day, and you believe every customer experience will be reinvented by AI, you're going to invest deeply and broadly in AI,” he said. He emphasised the necessity of considerable capital investment to procure the specialised AI chips required for advanced processing and to construct the extensive data center infrastructure needed to support AI operations.

Jassy's remarks concerning Amazon's financial outlays on artificial intelligence development resonate with statements made by Alphabet CEO Sundar Pichai on Wednesday at a Google Cloud event. During the Google Cloud event, Pichai reiterated Alphabet's plans for a substantial capital expenditure of approximately $75 billion this year.
He said that the investment will buy the chips and build the servers needed to better Alphabet's core offerings, including Search, as well as develop AI services such as its Gemini model.
“The opportunity with AI is as big as it gets,” he said, while making a surprise appearance at the company's annual conference for its cloud computing unit, as per Reuters.
On similar lines, Jassy said in the shareholders letter, "We continue to believe AI is a once-in-a-lifetime reinvention of everything we know, the demand is unlike anything we’ve seen before, and our customers, shareholders, and business will be well-served by our investing aggressively now.”

Jassy also touched upon the high costs of AI chips saying, “AI does not have to be as expensive as it is today, and it won’t be in the future.”
He said that AI chips are the biggest culprit for high cost because “most AI to date has been built on one chip provider. It’s pricey.”
Jassy expressed confidence in this strategy, writing, “Our customers, shareholders, and business will be well-served by our investing aggressively now.”
Earlier this year during the latest earnings call, Amazon said that it will invest about $100 billion in 2025, up from $83 billion in 2024, in AI development. At that time, Jassy emphasised that most of this budget will be allocated to Amazon Web Services (AWS), calling it a “once-in-a-lifetime type of business opportunity.”