CEO Andy Jassy cites generative AI as a once-in-a-generation opportunity, driving Amazon’s capital spending to record levels.
Amazon raised its 2026 capital expenditure forecast to $200 billion, more than double its $80 billion operating income in 2023. The increase reflects heavy investment in AI chips and data center infrastructure as the company bets on generative artificial intelligence to transform customer experiences.
CEO Andy Jassy called AI a “once-in-a-generation opportunity” in a recent interview, comparing its potential impact to the internet and mobile phones. The elevated spending is expected to continue beyond 2026, signaling a long-term commitment to AI-driven growth.
The shift marks a departure from Jassy’s prior focus on cost efficiency, aligning more closely with founder Jeff Bezos’ expansive growth strategy. Amazon’s NASDAQ-listed stock has seen volatility amid broader tech sector trends, though no immediate market reaction was specified.