Amazon to spend $50 billion to expand AI services to US agencies

Amazon.com Inc. says it will spend as much as $50 billion expanding its capacity to provide artificial intelligence and high-performance computing services to US government entities.

Amazon Web Services plans to break ground next year on what will ultimately be 1.3 gigawatts of additional capacity across data centres designed for federal agencies, the company said in a blog post on Monday.

The cloud unit, the world’s largest seller of rented computing power, offers US government clients services from dedicated facilities designed to meet strict security standards, covering issues like data handling, isolation from commercial projects, and nationality of employees.

AWS will offer agencies Amazon’s family of AI tools, one from close partner Anthropic and chips from both Nvidia Corp. and Amazon’s in-house chipmaking arm.

AWS supports more than 11,000 government agencies, it said in Monday’s announcement. The company provides services from more than 900 data centres, Bloomberg reported on Monday.

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