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Diving overview:
- Invested by Amazon 200 billion dollars Capital expenditures increase throughout the fiscal year 2026, Mainly focused on AWS, CEO Andy Jassy I said this during a company meeting. Q4 2025 Thursday Earnings Announcement. AWS segment sales increased $35.6 billion, an increase of 24% from the previous year Toward the end of the period December 31st 2025.
- Amazon’s capital investment is expanding due to increased demand. Jassy He added that he expects “strong long-term returns on invested capital.” The funding will also go towards chips, robotics and low-orbit satellites.
- “Customers really want AWS for their core and AI workloads,” Jassy says. “We are monetizing capacity as quickly as we can install it.”
Dive Insight:
Amazon, Google, and Microsoft expect to invest together Over $500 billion Capital spending will increase significantly in 2026 as tech giants race to build out AI infrastructure.
Microsoft plans to double its capital spending in fiscal 2026, with capital spending reaching $72.5 billion in the first two quarters. This figure is slightly behind the company’s figure. Total capital expenditures are $80 billion Full year 2025.
On the other hand, Google’s parent company Alphabet’s projected capital expenditures In total $185 billion in fiscal year 2026r. Alphabet CEO Sundar Pichai The company said it was increasing production capacity and “making long-term plans” during the period. Alphabet’s 2025 fourth quarter financial results will be announced on Wednesday.
As cloud providers build it, enterprises buy it.
Enterprise spending on cloud infrastructure services A total of $419 billion in 2025according to data from Synergy research group Published on Thursday. Corporate spending increases $29 billion from Q4 2024 to Q4 2025According to Synergy, the scale is “far greater than anything previously seen in this market.”
Amazon maintains a market share lead among major cloud providers. 28% of the market, followed by Microsoft with 21% and Google with 14%the company discovered. neo cloud provider coreweave also joins the top 10 cloud providers. Cloud revenue for the quarter was $1.5 billion.
He said 2026 will be a big year for Amazon. Futurum Group CEO Daniel Newman. Our total sales increased 12% to $716.9 billion Toward 2025.
“The narrative that AWS was slow in AI is gone.” Newman said in an email to CIO Dive.
AWS posted fastest quarterly growth since 2022 and Amazon’s Trainium and Inferentia Chips gain traction – AI model developers become less dependent on Nvidia – Robotics and physical AI become company’s next big boon Newman Said.
“Amazon is already building infrastructure such as advanced distribution centers, robotic fulfillment, and autonomous delivery,” Newman said. “They are in a position to take cost out of the system while their competitors are still building out.”
