{"id":288506,"date":"2026-02-09T07:32:15","date_gmt":"2026-02-09T07:32:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/288506\/"},"modified":"2026-02-09T07:32:15","modified_gmt":"2026-02-09T07:32:15","slug":"andy-jassy-sees-very-unusual-opportunity","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/288506\/","title":{"rendered":"Andy Jassy Sees Very ‘Unusual’ Opportunity"},"content":{"rendered":"\n

On Thursday, Amazon.com, Inc. (NASDAQ:<\/a>AMZN<\/a>) pushed back against Wall Street’s growing skepticism over soaring AI-related capital expenditures<\/a>.<\/p>\n

During the company’s fourth-quarter earnings call, Amazon addressed investor concerns around its aggressive spending on AI and data center infrastructure, arguing the investments are already producing returns.<\/p>\n

Responding to questions from Evercore ISI analyst Mark Mahaney about long-term return on invested capital, CFO Brian Olsavsky said Amazon is seeing immediate utilization of the capacity it is bringing online, particularly within Amazon Web Services.<\/p>\n

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“We are putting into service with customers all capacity that we are getting and it’s immediately useful,” Olsavsky said, adding that strong backlog and long-term customer commitments, especially for AI services, reinforce the company’s confidence.<\/p>\n

Olsavsky highlighted that AWS\u2019s profitability remains resilient even as Amazon ramps up spending.<\/p>\n

AWS posted a 35% operating margin in the fourth quarter, up 40 basis points year over year, despite what he described as near-term headwinds from AI-related depreciation.<\/p>\n

Margins will “fluctuate over time,” he said, noting that Amazon continues to offset AI-related costs through operational efficiencies and cost reductions.<\/p>\n

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Most of Amazon’s capital expenditures this year are expected to go toward AWS, with the majority tied directly to AI infrastructure. Some spending is also supporting faster-than-expected growth in non-AI workloads.<\/p>\n

Amazon CEO Andy Jassy underscored the scale of the opportunity, pointing to AWS’ 24% year-over-year growth and an annualized revenue run rate of $142 billion.<\/p>\n

“What we are continuing to see is that as fast as we install this capacity, this AI capacity, we are monetizing it. So it\u2019s just a very unusual opportunity,” CEO stated.<\/p>\n

He added that AI adoption is accelerating cloud migration, as customers increasingly need both their data and applications in the cloud to deploy AI at scale.<\/p>\n

Jassy said Amazon’s experience building and scaling AWS \u2014 including designing its own chips and networking gear \u2014 gives the company an advantage as AI workloads mature.<\/p>\n

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Over time, he expects AI economics to improve as inference workloads scale, utilization rises and pricing normalizes.<\/p>\n

“This isn’t some sort of quixotic top-line grab,” Jassy stated. ” I\u2019m very confident we\u2019re gonna have strong return on invested capital here.”<\/p>\n

Amazon reported fourth-quarter net sales of $213.39 billion, marking a 14% increase from a year earlier and topping Wall Street expectations of $211.30 billion, according to Benzinga Pro.<\/p>\n

Pointing to robust demand across its core businesses and emerging areas such as AI, custom chips, robotics and low Earth orbit satellites, Jassy said the company plans to spend roughly $200 billion on capital expenditures in 2026.<\/p>\n

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Photo Courtesy: bluestork on Shutterstock.com<\/p>\n

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This article Amazon Defends Massive AI Spending, Says New AWS Capacity Being Monetized Quickly: Andy Jassy Sees Very ‘Unusual’ Opportunity<\/a> originally appeared on Benzinga.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"On Thursday, Amazon.com, Inc. (NASDAQ:AMZN) pushed back against Wall Street’s growing skepticism over soaring AI-related capital expenditures. During…\n","protected":false},"author":2,"featured_media":288507,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,10934,10935,52875,218,219,138394,44530,128077,61,173,60,138395,80],"class_list":["post-288506","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-amazon-web-services","tag-amazon-com","tag-andy-jassy","tag-artificial-intelligence","tag-artificialintelligence","tag-brian-olsavsky","tag-capital-expenditures","tag-data-center-infrastructure","tag-ie","tag-inc","tag-ireland","tag-return-on-invested-capital","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/288506","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=288506"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/288506\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/288507"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=288506"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=288506"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=288506"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}