Amazon to boost spending on AI and other technology by $20 billion after strong Q2 results
Amazon will increase its capital spending on technology, primarily artificial intelligence, by an additional 10% to a total of $220 billion after reporting strong Q2 profits, driven by a 37% increase in sales from its cloud computing unit, AWS. CEO Andy Jassy noted that the rise in spending reflects the higher costs of memory chips and that even this increased budget will not fully meet demand. Following the announcement, Amazon's shares rose over 9% in after-hours trading, although the company provided a cautious sales outlook for the upcoming quarter.