Amazon CEO sees AI spending 'meaningfully' higher in 2027
Source: Business Insider ·
Amazon will spend meaningfully more than $220 billion on AI infrastructure in 2027 even as free cash flow sinks.
From the source
Amazon CEO Andy JassyMichael Nagle/Bloomberg via Getty ImagesAmazon reported third-quarter earnings on Thursday.Amazon stuck with its $220 billion capex forecast for 2026.CEO Andy Jassy expects the company to spend "meaningfully more" next year.Amazon is already spending a record amount on AI data centers. Next year will be even bigger.The world's biggest cloud-computing company reported third-quarter results on Thursday and reiterated its plan for $220 billion in capital expenditure for 2026.Then, CEO Andy Jassy shared his outlook for next year, saying Amazon expects "to spend meaningfully more in 2027."Amazon’s spending has become the central question hanging over the company. It's building massive data centers and buying expensive chips and other gear to meet surging demand for AI.That's pushed its free cash flow into negative territory, with third-quarter results showing a hole of $42.4 billion for the trailing twelve months.Amazon spent $75.9 billion in cash capital expenditures…