Amazon expects to spend about $220 billion in 2026, mainly on AWS — TechCrunch

Amazon expects to spend approximately $220 billion on capital expenditures in 2026, with most of the funds directed toward Amazon Web Services (AWS). The company also plans to significantly increase such spending in 2027, Amazon CEO Andy Jassy said during a quarterly earnings call.

Investment in AI infrastructure

As TechCrunch reports, Amazon is expanding infrastructure to develop its cloud business and AI. Jassy called global demand for AI-related cloud computing a historic opportunity for the company.

According to him, Amazon’s management sees a clear path to financial returns from the planned spending. At the same time, large-scale investment in AI infrastructure this year has raised questions among investors and analysts about the pace of future growth and the profitability of this segment.

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Target for AWS

AWS revenue rose 39% compared with the same quarter a year earlier, extending growth for a sixth consecutive quarter. Jassy said AWS has an annual revenue run rate of $184 billion.

The CEO predicts that AWS will be able to grow by more than 40% in 2027 and 2028. In his view, the cloud division could become a business with $1 trillion in annual revenue within the next five to ten years. Amazon shares fell by about 6% in after-hours trading on Thursday.