Amazon To Invest $50 Billion To Expand AI, Supercomputing For US Government

• The expansion includes nearly 1.3 gigawatts of additional compute power across Amazon’s government clients.
• The spending comes amid Amazon’s larger capex outlook of roughly $125 billion for 2025.
• Amazon follows in the footsteps of Apple, Nvidia and others who have also rolled out large U.S.-based investments in AI amid the Trump administration’s push to reshore critical technology.

Amazon (AMZN) announced on Monday that the company is investing up to $50 billion to expand AI and supercomputing capabilities for U.S. government customers through AWS. 

The tech giant said the investment will add nearly 1.3 gigawatts of compute power across AWS Top Secret, AWS Secret, and GovCloud regions by building new data centers starting in 2026. 

AMZN’s stock rose nearly 2% in midday trade. On Stocktwits, retail sentiment around the company continued to trend in ‘bearish’ territory over the past day.

What Does This Mean For U.S. Agencies?

The move is aimed at giving the 11,0000 federal agencies it works with access to advanced AI tools, including Amazon SageMaker, Amazon Bedrock, Anthropic Claude, and AWS Trainium chips. They will also have access to Nvidia’s (NVDA) AI infrastructure and other foundation models.

Amazon has projected full-year 2025 capital expenditures of around $125 billion. The $50 billion government-focused initiative follows last week’s separate announcement of a $3 billion investment in Warren County, Mississippi, to build a next-generation data center campus.

Tech Firms Step Up Domestic Investment

Amazon is joining a growing list of large U.S. technology companies announcing major domestic buildouts under the Trump administration’s push to reshore critical technology and manufacturing capacity.

Apple (AAPL) has announced plans to spend more than $500 billion over the next four years on initiatives such as U.S. manufacturing facilities, AI infrastructure, silicon engineering, and workforce development across multiple states.

Nvidia (NVDA) said in April that it is working with manufacturing partners to design and build factories that will produce Nvidia AI supercomputers entirely in the U.S. More recently, the company also announced collaborations with the U.S. Department of Energy’s national labs and private-sector partners to develop AI infrastructure.

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