Amazon expects to spend $75 billion on capital expenditure in 2024 and even more in 2025 – mostly on its cloud computing business – due to rising

Amazon to cough $75B on capex in 2024, more next year

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2024-11-01 15:30:07

Amazon expects to spend $75 billion on capital expenditure in 2024 and even more in 2025 – mostly on its cloud computing business – due to rising demand for generative AI and as more customers ditch their on-premises workloads.

The web services arm of Amazon (AWS) reported calendar Q3 net sales of $27.45 billion, up 19 percent year-on-year, and operating expenses of $17 billion, up from $16.08 billion. Operating profit jumped almost 50 percent to $10.45 billion.

In a contradiction to the message delivered to the UK's Competition and Markets Authority in its probe into the health of the local cloud market, AWS told investors last night that its business just keeps on expanding.

"We see more enterprises growing their footprint in the cloud, evidenced in part by recent customer deals with the ANZ Banking Group, Booking.com, Capital One, Fast Retailing, Itau Unibanco, National Australia Bank, Sony, T-Mobile, and Toyota," said Amazon CEO Andy Jassy, who previously ran AWS when Jeff Bezos headed Amazon.

"Companies are focused on new efforts again, spending energy on modernizing their infrastructure from on-premises to the cloud," he added. This helps customer orgs "save money, innovate more quickly, and get more productivity from their scarce engineering resources."