Amazon Defends Massive AI Spending, Says New AWS Capacity Being Monetized Quickly: Andy Jassy Sees Very ‘Unusual’ Opportunity

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

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.

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.

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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.

Olsavsky highlighted that AWS’s profitability remains resilient even as Amazon ramps up spending.

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