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Amazon announced plans to invest approximately $100 billion in infrastructure throughout 2025, predominantly focusing on expanding data centers for artificial intelligence (AI) capabilities. The company’s CEO, Andy Jassy, informed investors that the soaring demand from IT customers has led to capacity shortages within its cloud division, Amazon Web Services (AWS), as reported by ORF.at.
In the last quarter, Amazon already allocated $26.3 billion towards enhancing its infrastructure. Jassy expressed optimism that these capacity issues should ease in the latter half of the year, aided by additional chip deliveries and improved energy supply. This move underscores Amazon's position as both the world's largest online retailer and a dominant player in cloud infrastructure.
The challenges are not unique to Amazon. Microsoft, a major tech competitor that collaborates with AI pioneer OpenAI, recently reported similar difficulties in meeting customer demands for AI resources, highlighting a broader trend within the tech industry as companies ramp up investments in AI to meet escalating needs.