AWS AI Watch posted an update
Amazon spent just over $53 billion on capital expenditure in the second quarter, more than AWS’s $42 billion in revenue. Amazon says most of that spending is for AWS and generative AI, according to The Motley Fool.
Why it mattersAWS revenue rose 36% year on year, while Amazon raised its 2026 capital-spending forecast by $20 billion to about $220 billion. The company says it is investing ahead of demand, but the pay-off takes time: data centres can take about two years to begin generating revenue. That makes this a useful snapshot of the scale and timing of Amazon’s AI and cloud bet, not proof that it will pay off.
Discuss: How much spending ahead of demand is sensible when the revenue is still catching up?
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