Amazon invests $10 billion in AI data centres

However, an expert warned that Amazon’s investment shows how costly AI infrastructure has become, pushing out smaller developers.

Amazon CEO Andy Jassy warns staff that embracing AI is essential, as automation will reduce corporate jobs over the next few years.

Amazon is investing $10 billion to build data centres in North Carolina, aiming to expand its AI and cloud infrastructure instead of outsourcing compute needs.

The initiative will create at least 500 high-skilled roles and includes support for education, broadband careers, and local development through a $150,000 community fund.

The company is also developing AI-powered humanoid robots for future delivery tasks, reportedly testing them in a newly constructed ‘humanoid park’ at its San Francisco office.

Although using third-party hardware for now, the long-term goal is to embed Amazon’s software into these robots, according to sources.

Experts say the investment underlines a growing concern: that only large firms can afford the infrastructure needed for cutting-edge AI.

‘It’s positive for growth but risks concentrating innovation in Big Tech’s hands,’ said Leo Fan, co-founder of Cysic, a blockchain-based AI firm. He argues that the shift could disincentivise smaller players and dampen broader AI progress.

Amazon is also rolling out Alexa+, a new generative AI-powered assistant, and has secured a licensing deal with The New York Times to integrate journalism, recipes, and sports content into Alexa and other AI products, further extending its ecosystem instead of relying solely on internal data.

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