Amazon Pledges $100 Billion to Expand AI Retail Data Centers

Amazon has pledged over $100 billion in investments as it moves to expand its AI data centers for its retail and service operations, The Wall Street Journal reported.

Much of the cloud computing and AI investments are expected to go to Amazon's e-commerce warehouses and retail centers, particularly its logistic operations, over the next decade.

Amazon Pledges $100 Billion to Expand AI Retail Data Centers
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According to the report, the retail giant is looking to build at least 216 new data centers globally to meet rising for its Amazon Web Services, although most projects would not come to fruition until next year.

The company is projected to net tens of billions of dollars in return in the next few years.

The report came after Amazon was noted for building a new AI model, code-named "Metis," to rival other prominent chatbots like OpenAI's ChatGPT.

Amazon Customers to be Fed with More AI Features

With Amazon planning to ramp up its AI expansion on its products and services, customers and users are expected to be

Despite earlier failures with its "Just Walk Out" features in Amazon Fresh stores, the company is reportedly intent on making its customers more accustomed to AI-integrated experience.

So far, the company has introduced its "Rufus" chatbot on its online store to help shoppers browse products and suggest related items based on customers' platform behavior.

Similar customer experience is expected to roll out across other Amazon Web Service-powered divisions, although its guarantee for better user experience remains a question.

Amazon Lags in the AI Race

While Amazon has now been speeding up its AI development and integration, the company remains far behind other tech giants like Meta, Google, and Microsoft in the AI race.

Even the planned AI-powered improvements to its Alexa voice assistant are reportedly being delayed as the company struggles to develop the suitable technology to reach its marketing as "the world's best personal assistant."

Amazon first previewed the revamped Alexa last fall, over eight months of limited updates from the company.

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