Amazon has revealed its intention to allocate a staggering $200 billion this year towards the acquisition of critical infrastructure for artificial intelligence, including data centers and advanced chips. This colossal investment in AI has sparked apprehension among investors, who fear that the company's profitability may suffer before the anticipated returns from these investments materialize. Amazon has stated that it expects to allocate roughly $130 billion towards fixed assets and equipment in 2025. In contrast, analysts had initially projected that Amazon's spending would reach approximately $150 billion in the current year.
