On February 8, according to The Information and CNBCAmazonThe announcement of this year's capital expenditure will increase significantly to $200 billion, mainly for investmentAIInfrastructure, chips, self-study data centres and satellite Internet project Leo。
AS A RESULT OF THE NEWS, AMAZON STOCK PRICES FELL BY MORE THAN 71 TP3T IN POST-BUSINESS TRANSACTIONS, AND THE MARKET SHOWED A CLEAR CONCERN ABOUT THE PACE OF ITS RADICAL INPUTS。
Last year, Amazon capital spending was $131.8 billion, and this year's budget is not only much higher than last year, but also exceeds the 17.5 billion to 18.5 billion mark projected this year by Google's parent company, Alphabet。
Meta has also previously indicated that its capital expenditure in 2026 could nearly double to between $115 billion and $135 billion, indicating that competition by large technology companies on AI infrastructure is still accelerating。
The Amazon CEO Andy Jassy stressed at the press conference that he was "confident" in the long-term return on this huge investment and that it was not "a kind of Quixote-style rush."。
HE NOTED THAT THE AMAZON WAS FACING "VERY HIGH" AI COMPUTING NEEDS AND THAT IT WAS NECESSARY TO CONTINUOUSLY EXPAND DATA CENTRES, NETWORK EQUIPMENT AND CHIP CAPABILITIES TO MEET CLIENT GROWTH IN GENERATING AI AND ENTERPRISE-LEVEL AI APPLICATIONS。
AWS ACHIEVED $35.6 BILLION IN REVENUE IN THE FOURTH QUARTER OF LAST YEAR, AN INCREASE OF 241 TP3T FROM THE PREVIOUS QUARTER, A SIGNIFICANT INCREASE OVER 201 TP3T, AND THE FASTEST QUARTERLY INCREASE SINCE 2022。
Jassy says that if AWS had more computing power, it could have grown faster. AWS added nearly 4 giva in 2025 and is expected to double this figure by 2027。
At the conference, analysts repeatedly asked the Amazon when they would see the return on investment。
In response, Jassy stated that the AI market is in the "barbell structure": on the one hand, the AI laboratory, on the other hand, the enterprise that uses AI as a productivity tool, and on the other, the enterprise group that is building the AI application, while "the middle part is likely to be the largest and most resilient market."。
DESPITE THE CAUTIOUS RESPONSE OF THE MARKET IN THE SHORT TERM, THE AMAZON BELIEVES THAT ITS CONTINUED EXPANSION IN CLOUD COMPUTING AND AI INFRASTRUCTURE WILL LAY THE FOUNDATION FOR GROWTH IN THE COMING YEARS。