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Amazon To Invest $150 Billion Into AI Boom

AI is everywhere in 2024. We work with it; converse with it; we even play with it.


Chat GPT writes those emails to our boss that we don't want to. Alexa booms over the living room, reminding us to stock up on cat food. And, believe it or not, according to gambling expert Aneeca Younas at Techopedia, it's even used in the likes of online casinos for personalized recommendations for games based on user preferences. Want to play the latest slots or fancy some poker instead?


Thanks to the artificial intelligence at work behind the scenes, your casino pretty much knows exactly what you want. And you know that really helpful, very lifelike customer service rep that helped you when you locked yourself out of your casino account? Guess what? That was AI, too. 


And while AI has more than fair share of controversy, one thing is certain: it's only going to get bigger. Especially when the world's richest man (as of 03/31/2024) gets involved. Jeff Bezos' Amazon.com Inc. announced this week that it has plans to invest close to $150 billion over the next 15 years in data centers, bolstering its capabilities to meet the anticipated surge in demand for artificial intelligence applications and digital services.


This hefty investment underscores Amazon's determination to maintain its dominance in the cloud services market, where it currently holds a significant lead over its closest competitor, Microsoft Corp. Sales growth at Amazon Web Services (AWS) had slowed last year, but now with spending on the rise again, the company is aggressively securing land and power resources for its expanding network of data centers.


Kevin Miller, Vice President at AWS, highlighted the significant expansion of capacity, emphasizing the importance of proximity to customers.


Over the past two years, Amazon has committed to spending $148 billion on building and operating data centers globally, with plans to expand existing hubs and venture into new regions like Mississippi, Saudi Arabia, and Malaysia.


Amazon's investment in data centers surpasses that of its competitors, Microsoft and Google, although precise figures are not consistently disclosed by all companies. The expansion is primarily driven by the growing demand for corporate services and the anticipated rise in generative artificial intelligence.


While AWS has historically focused on regions like Virginia and Oregon due to favorable conditions, securing electricity is becoming increasingly challenging, putting pressure on utilities. To overcome these challenges, Amazon is exploring innovative solutions, such as partnerships with nuclear power plants and investments in renewable energy projects.


Despite the expansion, Amazon and other companies face stiff opposition to data center development, particularly regarding environmental concerns and land use issues. However, Amazon said it remains committed to renewable energy initiatives, aiming to power its operations with clean energy sources by 2025, and is exploring various options including battery storage and nuclear power to achieve this goal.


However, only time will truly tell if one of the most powerful companies in the world will indeed get its way and produce the sprawling data centers it deems so vital to the advancement of AI. 

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