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Amazon projects $200 billion in capital expenditures for fiscal year 2026
Thursday, February 5, 2026 at 09:15 PM
Amazon has guided for approximately $200 billion in capital expenditures for fiscal year 2026 to support its infrastructure requirements.
Context
Amazon CEO Andy Jassy projected $200 billion in capital expenditures for fiscal year 2026, marking an unprecedented commitment to AI infrastructure. This guidance arrived alongside Google’s projection of $175 billion to $185 billion, nearly doubling its previous annual spend. Both hyperscalers are racing to build data center capacity to meet "supply-constrained" demand for generative AI, signaling that massive compute scale has become the primary battlefield for cloud dominance.
This spending surge reshapes the semiconductor supply chain as Amazon and Google accelerate custom silicon development, such as Trainium and TPU chips, to optimize performance and reduce reliance on external vendors. While AWS and Google Cloud revenues grew at 24% and 48% respectively, these massive outlays may pressure near-term free cash flow. For investors, this represents a shift toward capital-intensive vertical integration where long-term infrastructure leadership is prioritized over immediate profitability throughout 2026.
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