Amazon Plans $100 Billion Investment in AI Amid Strong Earnings

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Amazon announced plans to invest $100 billion in artificial intelligence (AI) and cloud computing as part of its ambitious growth strategy. The company's fourth-quarter net income doubled to $20 billion, with net sales increasing by 10% to $187.8 billion, as reported on February 7, 2025. However, its stock fell over 5% in after-hours trading due to concerns about escalating AI investment costs and conservative guidance for the coming quarter.

CEO Andy Jassy emphasized the potential of AI, labeling it a "once in a lifetime" opportunity, while acknowledging uncertainty in the market, particularly in light of competition from China's DeepSeek model. Despite this, Amazon's cloud division, AWS, reported a 19% rise in sales to $28.8 billion. Analysts noted that while the company celebrated a successful holiday season, its forecast of 5-9% growth for the first quarter of 2025 fell short of expectations. Independent analyst Rob Enderle suggested that tariff uncertainties with China may be influencing Amazon's cautious approach.

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Deadly Tornadoes Strike Midwest US, Leaving 27 Dead

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