Amazon (AMZN) Doubles Down on AI Dominance with $13B Australian Power Move
Amazon just dropped a $13 billion mic in the global AI arms race—and Australia’s holding the bag. Here’s why Wall Street’s pretending to care about "long-term bets" while secretly checking its portfolio for leaks.
The AI Land Grab Accelerates
AMZN’s latest cash incineration—sorry, "strategic investment"—in Australian data infrastructure screams one thing: the cloud wars just got hotter. Forget koalas and kangaroos—this is about securing hyperscale real estate for the coming AI tsunami.
Follow the Money (Or the Tax Breaks)
That $13B price tag? Probably includes a few zeroes earmarked for regulatory sweetheart deals. Because nothing says "innovation" like governments paying megacorps to do what they’d do anyway.
The Bottom Line
While analysts hyperventilate about "ecosystem synergies," crypto natives smirk. Decentralized compute could make these centralized gold rushes look quaint—but until then, grab your popcorn and watch the FOMO capital flow.
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The news follows Amazon’s recent announcement of $20 billion investment to build two data centers in Pennsylvania.
Amazon’s Commits Massive AI Investment in Australia
Amazon’s $13 billion investment will be mainly directed towards enhancing Australia’s cloud computing and AI capabilities. The company intends to expand, operate, and maintain its data center infrastructure in the country and accelerate AI adoption.
The company also announced investment in three new solar farms in Victoria and Queensland to support its AI infrastructure expansion in Australia. Specifically, European Energy will deliver and operate the new projects, with Amazon agreeing to buy a combined capacity of more than 170 megawatts (MW) across the three solar farms. The company already invests in eight solar and wind projects across New South Wales, Queensland, and Victoria to power its data centers and fulfilment centers.
Amazon highlighted that Amazon Web Services (AWS), its cloud computing unit, has trained over 400,000 people in Australia since 2017 to develop digital skills. It aims to support generative AI programs like AWS AI Spring Australia and AWS Generative AI Accelerator.
What Is the Price Target for AMZN Stock?
Given its dominance in e-commerce and AI-led demand in AWS unit, Wall Street has a Strong Buy consensus rating on Amazon stock based on 46 Buys and one Hold recommendation. The average AMZN stock price target of $241.64 indicates about 14% upside potential from current levels. AMZN stock has risen more than 15% over the past year.
