Amazon and Alphabet are investing heavily in AI infrastructure, developing custom AI chips.
From Yahoo Finance: 2025-04-13 18:45:00
Microsoft is scaling back on data center leases, but Amazon and Alphabet are going full speed ahead. Microsoft plans to spend $80 billion on AI infrastructure this fiscal year, while Amazon and Alphabet plan to spend $75 billion and $100 billion, respectively. Tariffs are not affecting their plans.
Amazon CEO Andy Jassy sees AI as a game-changing reinvention, while Alphabet CEO Sundar Pichai calls the opportunity with AI massive. Both companies have a history of significant capex spending that has paid off, with Amazon creating an e-commerce empire and Alphabet pioneering cloud computing.
Amazon and Alphabet are investing heavily in AI infrastructure, developing custom AI chips for inference tasks. Amazon’s Trainium2 chip offers better performance than GPUs, aiming to lower AI costs. Alphabet’s Ironwood chip is energy-efficient and designed for model inference, helping drive AI innovation and cost efficiency.
AI investments by Amazon and Alphabet are expected to pay off in the long run. Both companies are developing custom AI chips to reduce infrastructure costs and drive innovation. AI is also being integrated into other aspects of their businesses to improve efficiency and customer experience.
Both Amazon and Alphabet are trading at attractive valuations, making them solid long-term investments in AI. The Motley Fool Stock Advisor team identified the 10 best stocks for investors to buy now, excluding Amazon. Historically, investing in recommended stocks has resulted in significant returns compared to the S&P 500.
Amazon and Alphabet’s heavy investments in AI and infrastructure are expected to yield positive returns, especially with Microsoft potentially slowing its spending. Both companies are at the forefront of developing custom AI chips, lowering costs, and driving innovation in the AI space.
Read more at Yahoo Finance: Amazon and Alphabet Bet Big on AI. Why History Says It’s Time to Buy Both Stocks