Amazon Flags AI Cost Overruns

more on AMZN Amazon (AMZN.O) employees flagged AI projects that produced what they called "catastrophic" cost overruns totaling several million dollars, citing deployment errors and weak spending controls, according to people familiar with the matter.

Senior engineers told colleagues on Tuesday that efforts to move tasks from traditional code to AI models generated unplanned expenses.

Engineers are implementing automated safeguards and other measures to rein in future project costs.

The $2.5 trillion company is conducting large-scale layoffs to cut costs and support its AI investments; it expects capital expenditure of about $200 billion this year, with the majority allocated to AI and data-center infrastructure.