Amazon Bets $220 Billion on AWS AI Dominance

Amazon has raised its 2026 capital expenditure guidance to $220 billion, primarily to expand AI and data center infrastructure for AWS. CEO Andy Jassy warned that even at that spending level, Amazon will lack sufficient capacity to meet demand in both 2026 and 2027. AWS posted $42.2 billion in Q2 revenue, up 37% year-over-year, with a $496 billion customer backlog. Total company revenue reached $200.6 billion, up 20%, while operating income climbed 43% to $27.5 billion. Amazon shares surged over 10% after the results.