Amazon Bets $200 Billion AI Buffet Will Pay Off, Investors Bring Antacids
KEY POINTS
- â˘Amazon revealed it will spend an eye-popping $200 billion on capital expenditures in 2026, well above Wall Street's $150 billion forecast.
- â˘CEO Andy Jassy assured investors that AI investments, including in-house chips Trainium and Graviton, will yield strong returns despite concerns.
- â˘Shares fell more than 10% after the earnings call, as analysts questioned the company's financial guardrails and sustainability of AI spending.
This year, Amazon plans to blithely toss $200 billion into its capital expenditure bonfire, confidently blowing past Wall Street's measly $150 billion hopes. CEO Andy Jassy insists this 'very unusual opportunity' â AKA turbocharging AI cloud muscle â will deliver strong returns despite shares diving over 10% post-earnings. Jassy proudly touted in-house chips Trainium and Graviton, expected to conjure $10 billion revenue while partnering with Anthropic 'going very well,' which sounds vaguely reassuring if you squint. All while analysts nervously ask about 'financial guardrails'âAmazonâs version of airbags for a money pile on fire. Meanwhile, Google, Meta, and Microsoft are caught in the same extravagant spending snowball, proving Big Techâs AI party has zero chill.
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Nothing says 'weâre confident' like Amazon spending $200 billion on AI with stocks falling 10%. It's like betting your rent on a magic 8-ball that already said 'try again.'
Amazonâs AI spending spree: proof that throwing money wildly at futuristic chips makes Wall Street cheapskates sweat.
Big Tech: where the barbell is $200 billion in spending on one end and investor panic on the other.
Source: Businessinsider | Published: 2/6/2026 | Author: Eugene Kim
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