Amazon starts AI offensive: 100 billion for Alexa+ and more!

Amazon starts AI offensive: 100 billion for Alexa+ and more!

Amazon saw its shares fall around 1.04% on Monday. Nevertheless, the company remains optimistic and plans to increase its investments to around 100 billion US dollars (approx. 88.5 billion euros) in 2025. The main focus of these investments is on the development of artificial intelligence, particularly in the area of ​​cloud computing via AWS (Amazon Web Services). This emerges from a report from Trading-Treff, which highlights the company's significant financial aspirations.

In the first quarter of 2023, Amazon already invested $24.3 billion (approximately €21.5 billion) in its AI technologies, an increase of over 70% compared to the previous year. CEO Andy Jassy describes an “explosion of coding agents” at AWS and highlights that the massive investments are justified by the great potential of AI. Amazon believes this technology will be crucial to its market position.

AI offensive and Alexa+

A central element of Amazon's AI strategy is the improvement of the Alexa voice assistant, which is to be replaced by the AI-controlled version Alexa+. This was described in a report by Investment Week. There are already 100,000 test customers in the US using Alexa+, and Amazon confirmed the existence of this test group after press reports raised doubts about the test.

Alexa+ will offer free, enhanced services for Prime customers and is intended to deliver more precise answers and autonomously handle complex tasks such as restaurant bookings and personalized shopping suggestions. However, Alexa+ is currently only available in the USA; international expansion is planned. Amazon has also created a new department within AWS specifically dedicated to developing such AI agents.

Market strategies and financial perspectives

The extensive investments are in the context of a high-growth AI market. AWS CEO Matt Garman sees AI agents as the "next multi-billion dollar business" for Amazon, and it's notable that AWS contributed nearly 70% of the company's operating profit in 2024. However, despite this positive outlook, Amazon shares have lost over 9% of their value since the beginning of the year, posing challenges for policymakers.

Analysts comment on the AI ​​offensive as a strategic necessity for Amazon's competitiveness, especially in a volatile market environment. The question remains whether the financial success from the investments will be visible in the coming year and which buying or selling strategies make sense for Amazon shareholders. Current trends highlight the complexity of the situation, while share prices have trended slightly upwards since mid-April, reaching the GD100 and GD200.