Amazon plans on spending more than $100 billion on capex in 2025

In total, Amazon, Meta, Microsoft, and Alphabet intend to spend a whopping $315 billion in capital expenditures this year.

Jon Keegan, David Crowther

2/7/25 11:05AM

While Amazon’s Q4 earnings may have disappointed investors with some gloomy guidance for the current quarter, its plans for 2025 are grand indeed.

In the past few weeks, all of Big Tech has been revealing the scale of its plans for spending on AI infrastructure, and it’s like everyone is trying to outdo each other with increasingly massive capex estimates.

At the start of the year, Microsoft’s president, Brad Smith, wrote in a blog post that the company was on track to spend $80 billion on AI data centers in 2025.
Then, Meta CEO Mark Zuckerberg said his company would spend up to $65 billion on capex, including a city-sized data center.
Alphabet CEO Sundar Pichai upped the ante, pledging $75 billion for AI and related infrastructure, including undersea cables.
Not to be outdone, Amazon CFO Brian T. Olsavsky told analysts on the Q4 earnings call that his company’s Q4 capex of $26.3 billion “will be reasonably representative of our 2025 capital investment rate,” which works out to over $100 billion.

Taken together, the top players in the industry are committing over $315 billion for this year alone.

4 big tech companies plan on spending $315+ billion on capex this year

“Lumpy” growth for AWS

Amazon CEO Andy Jassy sounded extremely bullish about the company’s AWS cloud computing unit — which had $28.8 billion in sales for Q4 — but warned, “We expect growth will be lumpy over the next few years,” due to fast-changing technology and unpredictable capacity planning.

Amazon is in a unique position in the current AI revolution, as it offers up solutions for each layer of the “AI stack.” It hosts cloud computing to train new models, runs any number of leading AI models, and quickly offered DeepSeek’s breakthrough models for its customers on its Bedrock and SageMaker platforms.

It also makes its own foundational model family named Nova, in addition to its Rufus AI shopping assistant, and is still working out the kinks on its next-generation Alexa.

In addition to selling cloud computing powered by market leader Nvidia, Amazon is also a few generations into its own specialized AI computing chips, “Trainium” and “Inferentia.”

When asked about the race to the bottom for computing costs fueled by new, cheaper approaches to train and run AI systems like DeepSeek, Jassy thought it would just translate into more business for the company, agreeing with Jevons Paradox:

“People thought that people would spend a lot less money on infrastructure technology. And what happens is companies will spend a lot less per unit of infrastructure, and that is very, very useful for their businesses. But then they get excited about what else they could build that they always thought was cost prohibitive before, and they usually end up spending a lot more in total on technology once you make the per unit cost less.”

Leap year wrinkle

As a reminder of the massive scale of Amazon’s business, the extra day on the 2024 calendar due to leap year actually affected the company’s guidance for the current quarter.

Just that one extra day generated $1.5 billion in sales across all of its units.

Max Knoblauch9h

The Trump administration is reportedly planning a 50% made-in-America requirement for USMCA tariff relief

Qualifying for USMCA-related lower tariffs may soon require more US-made vehicle components, according to reporting by The Wall Street Journal.

The Trump administration is reportedly planning to introduce a 50% US content requirement for vehicles covered by the trade pact to receive lower tariffs. The content would be measured by cost, according to the WSJ.

There currently isn’t any US-specific requirement for those lower tariff rates, but in order to receive preferential tariffs, vehicles are must contain at least 75% regional content (components made in North America). Per Reuters reporting, the Trump admin is seeking to raise the regional requirement to 82%.

These reported plans are subject to change as the US negotiates USMCA terms with Mexico over the next few months.

Overall, Tesla will likely have the easiest time qualifying for any stricter requirements. The automaker’s vehicles contained the highest amount of US/Canadian content in 2025, according to American University research. Ford, GM, and Stellantis all scored lower.

Notably: the underlying government data that many domestic content measurements rely on intentionally combines US and Canadian components, so it’s difficult to know exactly how much of any given vehicle is specifically US-made.

Exclusive | Trump Administration Wants Autos Under USMCA to Be at Least 50% Made in America

These reported plans are subject to change as the US negotiates USMCA terms with Mexico over the next few months.

Tom Jones15h

The $640,000 Luce makes the average Ferrari look like a bargain

Put aside the shape; put aside the smoothing out of Ferrari’s iconic sharp edges; put aside, even, the calls from former Chairman and President Luca Cordero di Montezemolo to “take the Prancing Horse off.” On the grounds of price alone, Luce detractors might have a point.

By now, many of us will have read the criticisms of Ferrari’s first fully electric vehicle, as the Luce — which was unveiled to the world earlier this week and promptly saw the company’s shares crash out in New York and Milan — gets subtly shaded by competitors online and not-so-subtly shaded by basically everyone else.

What makes all of this worse for Ferrari is that, even by the luxury car maker’s notoriously high standards, they’ve slapped a pretty hefty price tag on the Luce, and the company’s CEO, Benedetto Vigna, has already been forced to defend the €550,000 ($640,000) price point, saying yesterday that it’s “fair to pay for innovation,” per Reuters.

While Ferrari’s cars have been getting more expensive of late, as recently as 2022, Ferrari’s average revenue per car sold was around $340,000. At nearly twice that price, this new electric model is obviously proving a little much (visually, conceptually, and financially) for many loyal and long-standing fans of the Prancing Horse to stomach.