Amazon Workers on Food Stamps Nearly Triple as Company Plans $200B AI Spend

A government watchdog report has revealed that the number of Amazon (NASDAQ: AMZN) workers relying on food stamps (Supplemental Nutrition Assistance Program, SNAP) has nearly tripled, even as the company plans to spend $200 billion on artificial intelligence.

Report Details

The report shows a significant increase in the number of Amazon employees enrolled in SNAP over recent years, indicating that wages are insufficient to cover basic needs. Meanwhile, Amazon continues its massive investments in AI, including data centers, specialized chips, and cloud services.

Context

The report comes amid growing criticism of Amazon's labor practices and wages, particularly in its warehouses. The company has previously raised its minimum wage to $15 per hour, but the report suggests this remains inadequate for many workers.

What This Means for Investors

The report raises questions about the sustainability of Amazon's cost-cutting business model, which relies on low labor costs, while spending billions on ambitious AI projects. This could lead to regulatory pressure or demands for higher wages, potentially impacting profit margins.