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What is the story about?
Amazon's additional $13 billion investment in India will be largely directed towards Amazon Web Services (AWS), cloud infrastructure and artificial intelligence (AI), Chief Executive Officer Andy Jassy told CNBC-TV18's Shereen Bhan in an exclusive interview.
The fresh commitment, announced after Jassy's meeting with Prime Minister Narendra Modi in New Delhi on June 25, raises Amazon's planned investment in India between 2026 and 2030 to $48 billion. Amazon's cumulative investment in the country between 2010 and 2030 will now exceed $88 billion.
"This additional $13 billion will be largely AWS and cloud and AI," Jassy said adding that "the pace at which AI is growing here in India is really remarkable."
"We have invested about $40 billion since 2010 in India. We announced another $35 billion by 2030, and we are upping that by another $13 billion," Jassy said. "So an additional $48 billion total by the year 2030."
Amazon believes AI will reshape its business over the next decade, making the current investment cycle necessary despite near-term pressure on cash flows.
Jassy described AI as the most transformative technology of our lifetime, saying it would change existing customer experiences while creating entirely new ones.
He pointed to the pace of growth within AWS's AI business as evidence of the opportunity.
"When we started AWS, and I was part of the team that started AWS 20 years ago, the first three years of the AWS business, we felt like we were growing really fast, and the business was a $57 million annual run rate business. If I look at the first three years of this wave of AI in AWS, it's over $15 billion annual run rate. That's 260 times larger than what we had at the beginning of AWS. So, it's growing unbelievably quickly," he noted.
Jassy acknowledged that AI requires substantial upfront investment in data centres, chips, networking equipment and cloud infrastructure before revenues can fully materialise.
However, he expects that dynamic to change over the next few years as revenue growth overtakes capital expenditure growth.
He added that if Amazon continues to provide customers with sufficient AI capacity and services, the company's revenue, operating income and free cash flow could be substantially larger over the next five to ten years.
Watch the full interview on CNBC-TV18 at 7 am tomorrow
The fresh commitment, announced after Jassy's meeting with Prime Minister Narendra Modi in New Delhi on June 25, raises Amazon's planned investment in India between 2026 and 2030 to $48 billion. Amazon's cumulative investment in the country between 2010 and 2030 will now exceed $88 billion.
"This additional $13 billion will be largely AWS and cloud and AI," Jassy said adding that "the pace at which AI is growing here in India is really remarkable."
"We have invested about $40 billion since 2010 in India. We announced another $35 billion by 2030, and we are upping that by another $13 billion," Jassy said. "So an additional $48 billion total by the year 2030."
Amazon believes AI will reshape its business over the next decade, making the current investment cycle necessary despite near-term pressure on cash flows.
Jassy described AI as the most transformative technology of our lifetime, saying it would change existing customer experiences while creating entirely new ones.
He pointed to the pace of growth within AWS's AI business as evidence of the opportunity.
"When we started AWS, and I was part of the team that started AWS 20 years ago, the first three years of the AWS business, we felt like we were growing really fast, and the business was a $57 million annual run rate business. If I look at the first three years of this wave of AI in AWS, it's over $15 billion annual run rate. That's 260 times larger than what we had at the beginning of AWS. So, it's growing unbelievably quickly," he noted.
Jassy acknowledged that AI requires substantial upfront investment in data centres, chips, networking equipment and cloud infrastructure before revenues can fully materialise.
However, he expects that dynamic to change over the next few years as revenue growth overtakes capital expenditure growth.
He added that if Amazon continues to provide customers with sufficient AI capacity and services, the company's revenue, operating income and free cash flow could be substantially larger over the next five to ten years.
Watch the full interview on CNBC-TV18 at 7 am tomorrow
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