Amazon's shares tumbled after the company announced a significant increase in spending on artificial intelligence (AI) and infrastructure, joining other Big Tech giants in a massive AI investment spree. The announcement, made during Amazon's annual results report on Thursday, revealed plans to invest $200 billion this year in building out its business, with a substantial portion allocated to AI, according to BBC Business. This represents a significant increase from the $125 billion spent last year.
The market reacted negatively to the news, with Amazon's shares falling by more than 11% in after-hours trading, according to BBC Business. Amazon is among several tech giants planning to invest heavily in AI. Over the past week, Amazon, Meta, Google, and Microsoft collectively announced plans to invest $650 billion in AI and related projects this year, according to BBC Business. Amazon's planned investment makes it the most aggressive investor in the AI sector.
In other news, UK Research and Innovation (UKRI), the public body responsible for allocating £8 billion of taxpayer money annually to research and innovation in the UK, is facing "hard decisions" regarding funding future projects, according to BBC Technology. Ian Chapman, the head of UKRI, stated in an open letter that the government instructed the organization to "focus and do fewer things better," which "will result in negative outcomes for some," according to BBC Technology. These changes represent a major reorganization of how Britain's scientific research and innovation are prioritized and funded with public money, which has angered many in the research community, according to BBC Technology. Chapman indicated that the changes have not yet been finalized but are expected to be fully implemented soon.
Meanwhile, in Japan, former U.S. President Donald Trump endorsed Sanae Takaichi ahead of the country's snap election on Sunday, according to BBC World. Trump stated in a Truth Social post on Thursday that Takaichi has "already proven to be a strong, powerful, and wise leader... one that truly loves her country," according to BBC World. He added, "She will not let the people of Japan down!" While it is unusual for U.S. presidents to publicly support candidates in foreign elections, Trump has done so before, recently endorsing Javier Milei of Argentina and Viktor Orban of Hungary, according to BBC World.
In the United States, the healthcare system continues to face challenges, with no consensus on how to address its issues, according to BBC World. Jeff King, a former pastor from Lawrence, Kansas, received a $160,000 bill for a procedure to fix his irregular heart rhythm, according to BBC World. King, who had a cost-sharing alternative plan instead of standard health insurance, was informed that his plan would not cover the procedure. "It was pretty traumatic," King said, according to BBC World. "Who knew that less than a one-day procedure in and out of the hospital could destroy us financially?" King is one of an estimated 100 million people, or about 40% of Americans, facing healthcare affordability challenges, according to BBC World.
Discussion
AI Experts & Community
Be the first to comment