Amazon Announces Unprecedented $200B Investment in AI Infrastructure
Amazon.com has unveiled an extraordinary $200 billion capital expenditure plan for 2026, signifying a significant 50% increase from the $131 billion spent in 2025. The e-commerce titan and cloud computing leader disclosed this ambitious spending forecast in conjunction with its fourth-quarter earnings on February 5, 2026.
The investment will primarily be channeled towards AWS (Amazon Web Services) infrastructure. This includes enhancements in data centers, AI chips, robotics, and low Earth orbit satellites. CEO Andy Jassy emphasized that the company is “monetizing capacity as fast as we can install it“, in order to cater to the skyrocketing demand for both AI and core cloud workloads.
Despite exceeding revenue expectations with a staggering $213.4 billion in Q4 sales, Amazon’s stock experienced a drop of over 10% in after-hours trading. This was due to investor apprehension regarding the unprecedented spending levels. The announcement greatly surpassed Wall Street’s expectations of approximately $145 billion in capital expenditures.
AWS witnessed its fastest growth in 13 quarters, with cloud revenue surging 24% year-over-year to reach an annualized run rate of $142 billion. The company’s advertising business also demonstrated robust performance, expanding 23% to $21.3 billion during the quarter.
Source: CNBC