On Thursday, Amazon.com, Inc. (NASDAQ:AMZN) pushed back against Wall Street’s growing skepticism over soaring AI-related capital expenditures.
Amazon Pushes Back On AI CapEx Concerns
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.
“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.
AWS Margins Hold Firm Despite AI Investments
Olsavsky highlighted that AWS’s profitability remains resilient…
