WASHINGTON, Nov 24, 2025 (BSS/AFP) - Amazon announced on Monday a massive $50 billion investment to expand artificial intelligence and supercomputing capabilities for the US government, positioning the tech giant as a key player in building custom AI technology for federal customers.

According to a statement, the initiative will give US agencies access to advanced AI services including machine learning tools and AI chips to develop state-of-the-art software for missions ranging from cybersecurity to scientific research.

The investment will add nearly 1.3 gigawatts of computing capacity across Amazon Web Services' existing secure government cloud servers, with construction set to begin in 2026, the company said.

Amazon said the infrastructure will be located "across the country."

AWS competes with Microsoft and Google for the US government's cloud computing mega contracts, and the tech giants are hoping the relationship will grow even further with a transition to AI technology.

AI computing requires highly powerful, energy-hungry and expensive data centers, with the tech giants scrambling to build the infrastructure needed.

Amazon's cloud division AWS currently supports thousands of government agencies and has been building specialized government cloud infrastructure since 2011, when it became the first provider to create systems specifically for government security requirements.

The announcement comes as the US government accelerates efforts to maintain its technological edge in artificial intelligence amid growing competition from China.

The company said the new capabilities would strengthen America's AI leadership by giving federal agencies "the secure, scalable infrastructure they need for the next era of innovation."