Amazon Plans $200 Billion AI Infrastructure Surge for 2026

The Amazon.com Inc. is allocating approximately $200 billion in capital expenditures for 2026, a more than 50% increase over the previous year. This spending targets data center infrastructure, robotics, and low-earth orbit satellites to maintain the market share of Amazon Web Services (AWS) amid the generative AI boom.

To reduce reliance on Nvidia, Amazon is scaling its custom silicon business. CEO Andy Jassy reported that the company's chip business reached an annual run rate exceeding $20 billion in early 2026, with 98% of large clients using Graviton CPUs. The company is now pushing Trainium chips, which offer a 30% cost-performance improvement for AI training. This hardware push includes a three-year agreement to supply tens of millions of Graviton cores to Meta Platforms.

Financial stability for this spending is anchored by massive long-term commitments. OpenAI has committed approximately $100 billion to AWS infrastructure, and Anthropic has committed another $100 billion. In exchange, Amazon invested $5 billion into Anthropic, with plans for up to $20 billion more. Amazon also agreed to acquire Globalstar to accelerate its direct-to-consumer satellite internet network.

While the aggressive spending is expected to cause near-term negative free cash flow, analysts from KeyBanc and BMO Capital have maintained positive outlooks, with price targets reaching $325. This strategic pivot follows a strong 2025, where the company reported $716.9 billion in revenue and significant growth in its digital advertising business.