- Amazon increased its projected 2026 cash capital expenditures to approximately $220 billion from $200 billion to expand its AI infrastructure.
- AWS revenue grew 37% year-over-year to $42.2 billion in Q2, posting its fastest expansion in 18 quarters and beating analyst expectations.
- CEO Andy Jassy indicated that AI capacity constraints are expected to persist through 2026 and 2027, with demand signals already extending into 2028.
Quotes
“Even at that amount, we will still not have enough capacity to meet all the demand we have in 2026”
“I believe this dynamic will also be true in 2027, too. In fact, the demand we already have for 2028 is striking.”