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Amazon Raises 2026 AI Capex to $220B, Anthropic Pledges $100B

7/31/2026

42 8 Full Breakdown

Summary

Jassy Boosts Spending

Andy Jassy announced Amazon's 2026 capital spending will rise to $220 billion, up from $200 billion, for AI data centers and memory chips.
He warned AWS will lack AI compute capacity in 2026 and stay constrained through 2027, with demand booked to 2028.
AWS revenue for the quarter ended June 30 jumped 37% to $42.2 billion.
Anthropic pledged to buy over $100 billion of Amazon cloud services, deepening its AI-chip partnership.

Summary

Tech Giants Compete

Google reports 950 million monthly Gemini users, three times the figure a year earlier.
Apple says its next Siri update will embed Gemini technology and will charge heavy AI users.
Meta announced it is building an AI tool to sell to firms, though the product does not yet exist.
Industry observers note that despite chatbots from Meta, Google and Apple, none currently generate meaningful revenue.

History

Historical Context

Amazon introduced EC2 in August 2006, and by 2012 AWS generated over $1.5 billion, prompting Netflix’s full migration to the platform at the November 27 2012 re:Invent conference. Microsoft entered the market with Azure in February 2010. Building on that early cloud surge, Andy Jassy now proposes a $220 billion AI-compute spend to capture more than 40 % of global capacity by 2028.

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Jassy Boosts Spending

Andy Jassy announced Amazon's 2026 capital spending will rise to $220 billion, up from $200 billion, for AI data centers and memory chips.
He warned AWS will lack AI compute capacity in 2026 and stay constrained through 2027, with demand booked to 2028.
AWS revenue for the quarter ended June 30 jumped 37% to $42.2 billion.
Anthropic pledged to buy over $100 billion of Amazon cloud services, deepening its AI-chip partnership.

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