Amazon.com, Inc. (NASDAQ:AMZN) Q2 2023 Earnings Call Transcript

And so I’m very bullish on the growth of AWS over the next several years. And any one quarter, it’s hard for me to predict, but I am bullish about it in the medium to long term for sure. I think that on the — how much generative AI may impact the capital expense spend, included in that number is a pretty significant amount of capital expense in the AWS business for large language models and for generative AI. And we have quite a bit of demand right now. And so it’s — like in AWS, in general, one of the interesting things in AWS, and this has been true from the very earliest days, which is the more demand that you have, the more capital you need to spend because you invest in data centers and hardware upfront and then you monetize that over a long period of time.

So I would like to have the challenge of having to spend a lot more in capital in generative AI because it will mean that customers are having success and they’re having success on top of our services and — but I think that, that’s our best estimate right now on that capital expense, and we’ll update it if we find it’s different.

Dave Fildes: Thank you for joining us on the call today and for your questions. A replay will be available on our Investor Relations website for at least 3 months. We appreciate your interest in Amazon, and look forward to speaking with you again next quarter.

Operator: Ladies and gentlemen, that does conclude today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.