Amazon CEO Andy Jassy Highlights Plans For $200B In Capital Expenditures In 2026

Amazon CEO Andy Jassy revealed an aggressive AI infrastructure investment strategy on Thursday, primarily focused on funding AI and cloud infrastructure.

In his letter, Jassy said that most of the expenditure in 2026 will be monetized in 2027-2028 as the company has already received commitments from various customers for a substantial portion of it.

“We’re not investing approximately $200 billion in capex in 2026 on a hunch. The recent OpenAI commitment (over $100 billion) is an example of this, but there are several other customer agreements completed (and unannounced), or deep in process,” he stated.

Jassy stated that the AI revenue run rate surpassed $15 billion in the first quarter of 2026. The growth trajectory is 260 times faster than AWS itself achieved at a comparable stage in its early development.

Amazon also added 3.9 gigawatts of power capacity in 2025 and looks to double it by the end of 2027.

The announcement comes as Amazon’s cloud business rivals – Microsoft and Google – are pouring billions of dollars into developing their AI infrastructure.

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