Amazon Web Services plans $5 billion investment in South Korea's AI industry by 2031

Amazon Web Services (AWS) plans to invest nearly $5 billion in South Korea by 2031 to establish new artificial intelligence data centres in the Asian country, Reuters reported, citing South Korea's presidential office.

The announcement was made at the AWS CEO Matt Garman's meeting with South Korean President Lee Jae Myung on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Summit.

South Korea's push for AI

This investment aims to boost the AI industry in South Korea, as the country eyes to become one of the world's top three AI leaders, the report quoted Lee's statement.

"At AWS, we've invested and committed to investment of an additional $40 billion across 14 non-U.S. APEC countries and economies between now and 2028," the report quoted Garman.

“And, that $40 billion actually drives an additional $45 billion in U.S. GDP and downstream benefit, benefiting all of the APEC economy,” he said at a business event on the sidelines of the ASEAN Summit.

In June, AWS announced a $5 billion investment in South Korea in partnership with SK Group to develop the nation's largest data centre. Additionally, it revealed plans for investments in Japan, Australia, and Singapore.

Amazon is one of seven global corporations whose executives participated in the group meeting with Lee in Gyeongju, South Korea, committed to a combined investment of $9 billion over the next five years.

Amazon layoffs

Amazon's latest investment came at a time when the e-commerce giant confirmed 14,000 layoffs, months after Chief Executive Officer Andy Jassy hinted that artificial intelligence would reduce its workforce.

“The reductions we’re sharing today are a continuation of this work to get even stronger by further reducing bureaucracy, removing layers, and shifting resources to ensure we’re investing in our biggest bets,” Beth Galetti, senior vice president of people experience and technology at Amazon, said in a blog post on Tuesday.

On the reason for the latest layoffs, she said, “Some may ask why we’re reducing roles when the company is performing well. What we need to remember is that the world is changing quickly. This generation of AI is the most transformative technology we’ve seen since the Internet, and it's enabling companies to innovate much faster than ever before.”

(With inputs from agencies.)