Amazon projects its AI infrastructure investments will surpass Microsoft’s returns by 2027, driven by $132B capex and custom silicon.
Amazon expects its AI cloud return on investment to surpass Microsoft’s by mid-2027, fueled by $132 billion in 2025 capital expenditures and proprietary Trainium chips. The company secured $225 billion in commitments from Anthropic and OpenAI, aiming for a margin advantage over Microsoft’s NVIDIA-dependent model.
Microsoft’s AI business reached a $37 billion annual run rate, with 20 million paid Copilot seats, while AWS grew 28% to $37.59 billion. Amazon’s strategy relies on long-term infrastructure buildout, contrasting Microsoft’s immediate SaaS revenue from Copilot.
Both companies reported earnings on April 29, 2026, highlighting divergent approaches to AI monetization. Amazon’s silicon investments are positioned to compound returns as Microsoft faces ongoing GPU costs.