Amazon plans to increase capital expenditures to approximately $200 billion in 2026. This figure marks a significant surge from the $130 billion allocated for 2025.
The massive investment will fund infrastructure to support artificial intelligence, including data centers and custom chips. Capital will also support robotics development and the Project Kuiper satellite internet initiative.
Amazon shares fell between 7% and 9% in after-hours and pre-market trading. The decline followed a weaker-than-expected profit forecast for the upcoming quarter.
The heavy spending plan overshadowed strong fourth-quarter sales and growth in the cloud division. Investors expressed concern regarding the impact of these investments on near-term profits and free cash flow.