Amazon’s Record $200 Billion AI Infrastructure Investment Causes Stock Plunge
Amazon has unveiled an ambitious plan to invest a staggering $200 billion in capital expenditures in 2026. This unprecedented move, primarily aimed at bolstering its artificial intelligence infrastructure—including data centers, chips, and robotics—was announced during the company’s Q4 earnings call on February 6, 2026.
The announcement, which exceeded Wall Street expectations by over $50 billion, triggered a significant 8% drop in Amazon’s shares in Friday trading.
CEO Andy Jassy stood firm in his defense of the hefty spending, attributing it to the “very high demand” for AI compute from enterprise customers via Amazon Web Services (AWS). AWS has shown impressive growth, with a 24% year-over-year increase, reaching a $142 billion annualized run rate.
The investment is also slated to bolster the company’s custom chips like Trainium and Graviton, which are projected to generate over $10 billion in revenue this year.
With this spending plan, Amazon is poised to lead the AI infrastructure race, outpacing Google’s $175-185 billion projection for 2026. This year, the major tech giants, including Meta and Microsoft, are collectively expected to invest approximately $650 billion in AI infrastructure.
Despite investor concerns about near-term profitability, Jassy expressed confidence in achieving a “strong return on invested capital” from the AI buildout.
Source: CNBC