Amazon Web Services (AWS) is set to invest a staggering $5 billion in South Korea's AI sector by 2031, according to a Reuters report citing South Korea's presidential office. This significant investment aims to establish cutting-edge AI data centers in the Asian nation, propelling South Korea's ambitions to become one of the world's top three AI leaders. The announcement was made during AWS CEO Matt Garman's meeting with South Korean President Lee Jae Myung on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Summit, highlighting the country's commitment to AI advancement. Garman emphasized AWS's dedication to investing $40 billion across 14 non-U.S. APEC countries and economies by 2028, with a significant portion directed towards South Korea. This investment is expected to catalyze an additional $45 billion in U.S. GDP and downstream benefits for the entire APEC economy. In June, AWS announced a $5 billion investment in South Korea in partnership with SK Group to develop the nation's largest data center, with plans for further investments in Japan, Australia, and Singapore. Amazon, one of seven global corporations, pledged a combined investment of $9 billion over the next five years, showcasing the company's commitment to AI innovation. However, this substantial investment coincides with Amazon's recent layoffs, totaling 14,000 positions, as CEO Andy Jassy hinted at the potential impact of AI on the workforce. Beth Galetti, senior vice president of people experience and technology, attributed the layoffs to the need to reduce bureaucracy, streamline operations, and focus on strategic investments in AI and other key areas. This strategic shift towards AI, despite the layoffs, underscores Amazon's belief in the transformative power of AI, positioning it as a pivotal technology for the future of the company and the global economy.
