Amazon's CEO Defends Massive $200 Billion Investment Plan
Amazon announced a $200 billion capital expenditure plan for 2026, primarily directed toward data center infrastructure to support AI services.
Amazon plans to invest $200 billion in 2026, significantly exceeding analyst expectations. CEO Andy Jassy defended this decision during an investor call, explaining that the investment is necessary to meet strong demand for Amazon's AI computing services. Amazon Web Services achieved 24% sales growth recently, demonstrating the value of cloud infrastructure.
Although the stock declined initially, Jassy emphasized that these investments will generate strong returns. Other tech companies like Alphabet and Meta are making similar large infrastructure investments to compete in the AI market.
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