The News
Amazon will invest $100 billion in infrastructure this year, mostly in artificial intelligence, undermining suggestions that demand for computing power would fall after Chinese firm DeepSeek revealed a low-cost AI model.
The 29% hike in spending comes as other Big Tech firms boost AI investment, and supports the argument that “falling technology costs actually lead to greater spending on technology,” a phenomenon known as Jevon’s paradox, The Information argued.
Both Amazon and Microsoft said they were unable to keep pace with demand for AI products. In further evidence that DeepSeek’s success has not slowed investment in AI, France and the UAE announced they would spend up to $50 billion on building Europe’s largest data center dedicated to AI, in France.