Amazon $AMZN announced another massive investment in artificial intelligence! Shares are rallying in response!
Amazon shares $AMZN are up more than 2% today. This gain is driven partly by the broad market rally and a rebound in tech, but also by the announcement of a $50 billion investment in AI infrastructure.
The new project, which will primarily serve the U.S. government, will include nearly 1.3 gigawatts of new data center capacity for Amazon AWS Top Secret, AWS Secret and AWS GovCloud services.
Amazon said that through this project federal agencies will gain access to Amazon SageMaker for model training, Amazon Bedrock for deploying AI agents, Amazon Nova, Claude from Anthropic, Amazon's Trainium AI chips and AI infrastructure from Nvidia $NVDA. Nvidia shares are up 1.45% today.
wow
$AMZN is one of my larger positions, and despite great results and big investments, it still bothers me a bit that its performance is low.
For me, it’s further confirmation that Amazon is taking the AI race really seriously — $50 billion into new infrastructure for the government cloud is a huge step that could strengthen AWS’s position in the most lucrative segment over the long term. Let’s just hope they don’t get burned somewhere :D
Hopefully this is good news and will actually help the company. I hope the money isn't just being wasted.