Amazon announced its third-quarter performance on Thursday, and during the conference call with analysts, the CEO of the company, Andy Jassy, attempted to dispel investors' doubts about whether the company's significant investments in generative artificial intelligence would pay off in the future.

Jassy pointed out that Amazon's cloud computing business AWS has been successful, despite the extremely high costs of building data centers, making it a crucial profit engine.

"I believe that over time, we have demonstrated that we can drive enough operating profit and free cash flow to make this investment capital business very successful," Jassy said. "We expect the same thing to happen in the field of generative artificial intelligence."

In the third quarter, Amazon spent $22.6 billion on real estate and equipment, an 81% increase from the same period last year. Jassy stated that Amazon plans to invest $75 billion in capital expenditures in 2024, with higher expenditures expected in 2025.

Jassy mentioned that the increase in spending is mainly driven by investments in artificial intelligence. The company is eager to invest in data centers, network equipment, and hardware to meet the significant demand for this technology. Since the release of the ChatGPT assistant by OpenAI nearly two years ago, the technology has seen explosive popularity.

"This is a very big opportunity, perhaps a once-in-a-lifetime opportunity," Jassy said. "I believe our customers, business, and shareholders will be satisfied with our actively pursued long-term goals."

Artificial intelligence spending was a major topic during this week's technology company earnings conference calls. On Wednesday, Meta raised its capital expenditure expectations, with the company's CEO, Mark Zuckerberg, stating he was "fairly satisfied" with the team's performance. Meanwhile, Microsoft's investment in OpenAI weighed down the first-quarter earnings report released on Wednesday, with the company stating that capital expenditures would continue to rise. The day before, Alphabet's CFO indicated that capital expenditures were expected to increase by 2025.

Amazon had previously mentioned that its cloud computing division has gained more business from companies needing infrastructure to deploy generative artificial intelligence models. In recent months, the company has also introduced several artificial intelligence products for enterprises, third-party sellers on its marketplace, and advertisers. The company is expected to announce an enhanced version of the Alexa voice assistant containing generative artificial intelligence, which Jassy said would be launched "in the near future."

Amazon has not disclosed its revenue from generative artificial intelligence yet, but Jassy said on Thursday that it has become a 'multi-billion dollar revenue run rate' business under AWS and 'continues to grow at a triple-digit annual growth rate'.

He added, 'At this stage of development, its growth rate is more than three times that of AWS itself, and we think AWS is growing quite rapidly.'