Amazon to Spend $200 Billion on AI and Robotics in 2026

Amazon will increase its capital spending to $200 billion in 2026, focusing on artificial intelligence, robotics, chips, and satellite technology, according to The Guardian. The figure represents a sharp rise from the $125 billion invested last year and surpasses Wall Street expectations, which had projected spending of about $147 billion.

Chief executive Andy Jassy said the investment reflects strong demand for existing services and new opportunities in AI and infrastructure. He stated that Amazon expects a strong long-term return on its capital expenditures. The company reported $213.4 billion in revenue for the fourth quarter of fiscal 2025, a 14% increase from the previous year, though slightly below analysts’ forecasts.

Amazon Web Services (AWS) continued to drive growth, with revenue rising 24% to $35.6 billion in the quarter, marking its fastest expansion in 13 quarters. Advertising revenue also increased by 22%. Despite these gains, shares of Amazon fell nearly 9% in after-hours trading following the announcement.

The investment aligns with a broader trend among major technology firms. Meta, Google, and Microsoft are collectively expected to spend over $630 billion this year on AI and related infrastructure, underscoring the scale of competition across the sector.