Amazon Plans to Spend More Than $200 Billion on AI. Is That a Smart Move?
Amazon's $220 billion in capital expenditures in 2026 could be the smartest investment in the company's history. But with caveats.
Overview
$220 billion. That's roughly how much Amazon (NASDAQ: AMZN) expects to deploy in capital expenditures in 2026. To put that number into perspective, it's more than the annual revenue of many Fortune 500 companies. And Amazon isn't spending it because it needs more warehouses to deliver packages.
A huge portion of this money is going toward AI infrastructure -- and that should make investors pause. Amazon is effectively making one of the largest technology bets in corporate history at a time when the economics of AI are still uncertain. If AI demand keeps exploding, Amazon could be building the infrastructure for its next great growth engine.
Details
But if the industry gets ahead of itself, Amazon could end up committing hundreds of billions of dollars to capacity that doesn't generate the returns investors expect. So is Amazon being visionary, or reckless?
Source
Originally published at www.fool.com.