Amazon's 2026 capital expenditure plan has reached $220 billion, with the majority of funds allocated to AI infrastructure for the AWS cloud division. This budget was initially announced in February as approximately $200 billion but was increased during the Q2 earnings update on July 30 due to rising memory chip costs.
CEO Andy Jassy stated that the spending is driven by demand, noting that AWS revenue grew 37% year-over-year in Q2 2026, the fastest growth in 18 quarters. According to Jassy, customer commitments for AWS capabilities extend into 2028, currently outpacing the company's supply capacity.
The company has entered into partnership deals totaling $75 billion with firms such as Anthropic and OpenAI. Specifically, the agreement with OpenAI is reported to exceed $100 billion, representing contractual revenue that will eventually flow into the income statement.
Amazon's 2025 full-year capex was between $128 billion and $131.8 billion. The 2026 figure represents an increase of approximately 67% at the midpoint compared to the previous year.
In comparison to competitors, Amazon's $220 billion budget exceeds Alphabet's projected 2026 capex of $175 billion to $205 billion and Meta's estimate of $115 billion to $145 billion.