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Amazon.com, Inc. (AMZN) Web Services Commits Additional $10 Billion to Ohio Data Center Expansion for AI and Cloud Growth

We recently compiled a list of the 9 Trending AI Stocks on Latest News and Ratings. In this article, we are going to take a look at where Amazon.com, Inc. (NASDAQ:AMZN) stands against the other AI stocks.

AI’s Appetite for Resources and the Price of Progress

A Bloomberg report from December 13, AI Wants More Data. More Chips. More Real Estate. More Power. More Water. More Everything, explores the resource-intensive nature of artificial intelligence, emphasizing its demands on electricity, water, and infrastructure. ChatGPT and similar AI systems require vast amounts of power, far exceeding traditional services like Google Search. AI models require enormous energy, materials, and specialized hardware like GPUs. This is driving a global race for resources, with companies seeking efficient solutions, including nuclear power and synthetic data generation, the report states.

The infrastructure required to support AI, from data centers to power grids, faces significant challenges, with rising demands for energy and materials like copper, silicon, and rare metals. While AI presents a tremendous opportunity, the article highlights potential environmental impacts, talent shortages, and increasing infrastructure costs. As AI companies compete to meet the growing needs of generative AI, the global ecosystem is reshaping.

READ ALSO: 10 Companies Hoarding Bitcoin Like There’s No Tomorrow and 10 Important AI Announcements for Investors.

The Future of AI and Energy in the U.S.

Byron Deeter, partner at Bessemer Venture recently joined CNBC’s ‘Closing Bell Overtime’ and discussed the continued strong investor interest in AI, with the U.S. government’s backing further supporting the country’s leadership in the sector. He highlighted the role of energy in AI development, noting the need for nuclear energy in the U.S. due to the growing demand for computing power. Deeter also talked about Service Titan, a company providing software for industries like plumbing and HVAC, which recently went public. He sees the IPO as a sign of more companies following suit in 2025, with a strong pipeline of potential filings for the coming year.

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

A customer entering an internet retail store, illustrating the convenience of online shopping.

Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 286

Amazon.com, Inc. (NASDAQ:AMZN) has been a leader in AI innovation, using it to transform shopping, entertainment, and operations, and drive progress across its diverse businesses. The company continues to be deeply involved in advancing AI technologies to enhance customer experiences and optimize services.

On December 16, Fox News reported that Amazon Web Services (AWS) announced an additional $10 billion investment in Ohio’s data center infrastructure, bringing its total commitment to over $23 billion by 2029. This expansion, building on AWS’s 2016 entry into the state, will support new data center locations, though specific sites are yet to be determined. The investment is contingent on securing long-term energy agreements. AWS’s data centers will host technology infrastructure for cloud computing, AI, and machine learning. This follows AWS’s June 2023 announcement of a $7.8 billion investment in central Ohio by 2029, in addition to $6 billion invested through 2022, the report stated.

Overall AMZN ranks 1st on our list of the trending AI stocks. While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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