Nairobi, Kenya- Amazon has unveiled plans to pour a staggering $200 billion (Sh25.8 trillion) into artificial intelligence and infrastructure, marking one of the boldest bets yet in Big Tech’s accelerating AI race—and rattling investors in the process.
The investment, announced alongside the company’s full-year financial results, represents a dramatic jump from the $125 billion Amazon spent on AI-related projects last year.
Markets reacted swiftly, with Amazon shares plunging over 11 pc in after-hours trading, reflecting growing unease over how soon Big Tech will see returns from its AI spending spree.
Amazon now joins rivals Meta, Google and Microsoft, which collectively plan to spend $650 billion on AI and related technologies this year alone—an arms race that is fuelling both excitement and anxiety across global markets.
Amazon Goes All-In on AI
Amazon chief executive Andy Jassy made it clear that artificial intelligence sits at the heart of the company’s long-term strategy, describing the technology as a once-in-a-generation opportunity.
“It’s an unusual opportunity,” Jassy told analysts, adding that AI would eventually become highly profitable.
“I passionately believe every customer experience we have today will be reinvented by AI. We’re going to invest aggressively.”
While Amazon said the funds will also go into chips, robotics and low Earth orbit satellites, executives confirmed that the bulk of the spending is AI-focused, particularly within cloud computing and automation.
Investor Jitters Grow
Despite Big Tech’s optimism, investors are increasingly wary that AI spending may be running ahead of commercial reality.
Mary Therese Barton, chief investment officer at Pictet Asset Management, said markets are showing signs of fatigue.
“There are certainly jitters,” she told the BBC.
“It’s been a wake-up call around whether these investments in AI are actually going to come good.”
The caution echoes earlier warnings from the Bank of England, whose governor recently said US tech stock valuations bear uncomfortable similarities to levels seen before the dotcom bubble burst in the early 2000s.
AI Boom or Bubble?
Some of the most influential voices in global finance and technology have openly questioned whether the AI surge is sustainable.
Cisco CEO Chuck Robbins described AI as “bigger than the internet,” but warned the sector may be heading toward a painful reckoning.
“There will be carnage along the way,” he said, noting that not all companies will survive the transition.
JPMorgan Chase CEO Jamie Dimon struck a similar tone, saying some AI investments will “probably be lost” as firms overextend themselves.
Jobs, Layoffs and the Cost of Innovation
Amazon’s aggressive spending comes as the company trims costs elsewhere. Chief financial officer Brian Olsavsky confirmed that Amazon is pursuing cost reductions even as it ramps up AI investment.
Last week alone, the company laid off 16,000 workers, following another 14,000 job cuts in October—fueling concerns that AI adoption may accelerate workforce reductions.
Other tech giants are already acknowledging the shift.
Meta CEO Mark Zuckerberg said AI is reducing the number of workers required for large technical projects and predicted that 2026 will be the year AI dramatically reshapes the workplace.
Big Tech Doubles Down
Meta plans to spend up to $135 billion this year on AI infrastructure, nearly doubling last year’s budget.
Google has gone even further, with CEO Sundar Pichai confirming plans to invest $185 billion, more than twice its previous capital expenditure.
Microsoft, while not providing a full-year figure, has already spent over $72 billion on AI talent and infrastructure, with no indication of slowing down.
The market response has been unforgiving. The S&P 500 fell more than 1 pc on Thursday, extending losses from its late-January all-time high.
What It Means for Kenya
While the AI boom is centred in the United States, its ripple effects are global. For Kenya, the surge highlights both opportunity and risk—particularly for tech workers, startups and digital infrastructure players plugged into global supply chains.
As Big Tech races ahead, policymakers and businesses in emerging markets may soon face hard questions about skills, jobs and digital competitiveness in an AI-driven world.
