Amazon Goes All-In on AI With $200B CapEx, Drowning Out Delivery Wins

Amazon outdid its Big Tech competitors by mounting a bold people to put $200 cardinal successful superior expenditures crossed the institution successful 2026, arsenic the e-commerce elephantine plans connected aggressively bolstering artificial quality (AI) spending, namely to powerfulness unreality computing level Amazon Web Services (AWS).

The announcement stunned Wall Street, with institution banal selling disconnected astir 10 percent successful aboriginal trading Friday. The volatile terms question capped disconnected a weeklong occurrence merchantability crossed tech companies arsenic investors stay acrophobic astir the projected returns of the spending, alongside worries that AI platforms could endanger existing endeavor bundle businesses.

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Amazon’s 2026 CapEx spending is projected to surpasses that of some Google genitor Alphabet, which plans connected expenses arsenic precocious arsenic $185 billion, and Meta, which could scope $135 billion.

Andy Jassy’s tenure arsenic Amazon’s CEO has been defined by the company’s quality to chopped costs crossed the business, each portion hastening transportation speeds and optimizing inventory placement crossed the proviso chain. But similar its Big Tech brethren, Amazon has spent the past twelvemonth keeping its wealth printer humming erstwhile it comes to AI-related spending, having spent $131.8 cardinal connected superior expenditures successful 2025.

During Thursday’s net call, the institution brass besides touched connected immoderate wins successful its transportation business, noting that it shipped astir 70 percent much items same-day successful 2025 successful the U.S. than it did the twelvemonth prior. As portion of a $4 cardinal spending initiative, astir doubly arsenic galore monthly customers successful agrarian areas are receiving same-day transportation year-over-year, according to Jassy.

“On Christmas Eve, customers successful astir 4,000 U.S. cities could bid items up until midday and get them that aforesaid day,” Jassy touted.

Just six months aft launching the Add to Delivery fastener for Prime users wrong the mobile app and website, the diagnostic makes up astir 10 percent of each Prime measurement fulfilled done the Amazon web each week. With the feature, Prime members tin adhd items to already scheduled deliveries without going done checkout again oregon paying further shipping fees.

On paper, Amazon’s fiscal results proceed to impressment contempt the mediocre reception from the expert community.

Net income accrued 14 percent to $213.4 cardinal successful the 4th quarter, and was up 12 percent erstwhile excluding a $2.8 cardinal favorable interaction from year-over-year changes successful overseas speech rates.