Amazon will lift capital expenditure to $220bn this year with higher memory costs pushing up the cloud giant’s planned spending.
Andy Jassy, Amazon’s chief executive, told investors on Thursday that the group would raise guidance for the full year from $200bn, with the majority of spending allocated towards AI and data centres.
The Seattle-based cloud giant’s chief said the spending was warranted because the group did not have sufficient capacity to meet booming demand. Sales at Amazon Web Services, its cloud division, rose 37 per cent year on year to $42.2bn, beating analysts’ expectations.
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