Amazon plans to spend around $200 billion on capital expenditures in 2026 alone for AI infrastructure

Amazon Web Services (AWS) is investing heavily in computing capacity to build and run AI models. Management has already secured agreements to utilize the expanded capacity being built this year and beyond.

AWS revenue rose 28% year over year in Q1, the fastest growth rate in nearly four years. Its custom chip business grew at a triple-digit rate. AWS generated 59% of Amazon's operating profits in Q1.

Amazon views the AI build-out as a "once-in-a-lifetime" opportunity, with investments expected to drive rapid cash flow growth for years ahead. The faster AWS grows, the more investment it requires.