Amazon is currently the fourth-largest company in the S&P 500, according to S&P Global. Thus, when Amazon makes investments, they tend to be enormous. For 2025, the company announced that it will make approximately $100 billion in capital investments, with a large amount of that going into artificial intelligence (AI).
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Clearly, this type of money being thrown around will create an impact. But how can individuals benefit from this? Read on to find out.
Also see four ways Jeff Bezos and Amazon changed the way we spend.
Amazon’s Stock Price Could Rise
Individuals can look to Amazon’s stock as a way to potentially profit off its AI investments.
Amazon is rushing to invest a huge amount of money in AI because it feels, in the words of its CEO Andy Jassy in anearnings call that it’s a “once-in-a-lifetime type of business opportunity,” CNBC reported. That’s a huge statement from one of the biggest companies in the world.
“I think that … our customers and shareholders will be happy, medium to long-term, that we’re pursuing the capital opportunity and the business opportunity in AI,” he said.
In other words, Amazon’s investment into generative AI via networking gear, hardware and data centers could be a boon to Amazon stock investors, thanks to its enhanced position against competitors like Alphabet and Meta Platforms.
Another way that Amazon could get a lift to its share price over time is by investing the money it saves. If AI helps the company run more smoothly, efficiently and cost-effectively, it could potentially save tens of millions of dollars or even more over time due to its own investments. This money could be used for a host of shareholder-friendly investments, from stock buybacks to dividends to additional corporate or technological investments.
It should be noted, however, that Jassy called the company’s investment into AI a “medium to long-term” benefit, so shareholders shouldn’t expect results for some time. But it’s better to invest in a company like Amazon before its investments are reflected in its share price rather than after.
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Goods May Cost Less
Jassy’s comment references not just how shareholders will be happy, but also how customers will benefit from the company’s investment. By strategically pouring money into a rapidly growing field, Amazon could become more efficient at delivering its products, and this could help keep prices lower over time.
Amazon must invest to keep itself competitive against others in its industry, and this competition can help keep goods cheaper for consumers. Investing specifically in AI could also help make the chain of production more efficient, which is another way that Amazon itself could drive prices lower.
These processes will all take time, but they could bode well for consumers in the future.
Technology Investments Could Change the World
Making money by investing in Amazon stock — or saving it by purchasing products for less — are the two primary ways you’re likely to benefit from Amazon’s AI investments. But there’s a more speculative, philosophical argument as to how its AI investments could help you make or save money in the future.
Simply put, Amazon investing $100 billion into technology could change the world. This spending will likely drive the company’s competitors to continue innovating on their own, and it’s likely that new AI- and cloud-related opportunities that could ultimately make the world a better place to live in will be created.
For example, emerging AI technologies may end up giving everyone the greatest gift of all — the gift of time. Whether you’re a believer in the expression that “time is money” or you just understand how precious extra time is in this overburdened world, Amazon’s AI investments could pay off for everyone in the years ahead.
In anearnings call Jassy said, “We think virtually every application that we know of today is going to be re-invented with AI inside of it,” ABC News reported. It’s clear Amazon has big plans for its AI investments that could lead to profits for shareholders, customers and the world more broadly.
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This article originally appeared on GOBankingRates.com: How Amazon’s AI Investments Could Make You Money
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
