Amazon’s Aggressive AI Spending Spree Sparks Investor Exodus
Amazon shares plunged to levels unseen since 2006 after revealing a $200 billion capital expenditure plan for AI infrastructure. The tech giant has shed 18% of its value this month alone, erasing $463 billion in market capitalization. This marks its steepest decline since April 2022.
CEO Andy Jassy defended the massive outlay during February's earnings call, framing it as essential for AWS growth. "These investments will yield strong returns," he asserted, drawing parallels to AWS's historical performance. Yet markets remain unconvinced—fearing depleted cash reserves and rapid hardware depreciation in the volatile AI sector.