Amazon lines up $200bn in capital spending in 2026

That was a 13.6% increase on the same figure in 2024, with international sales growing by 17% and North America up by 10%.

Amazon’s cloud business, Amazon Web Services (AWS) drove $35.6bn (£26.2bn) in sales, but the majority of the company’s operating profit. 

Shares in the company fell after it announced $200bn (£147.4bn) in capital spending for the year as it ramps up investment in AI. This is more than 50% higher than its 2025 spending.

“I passionately believe every customer experience we have today will be reinvented by AI,” said chief executive Andy Jassy in a call with analysts. “We’re going to invest aggressively.” 

Net income reached $21.2bn (£15.6bn) in the quarter, up $1.2bn (£884.5bn) from the same quarter in 2024. 

Amazon announced 16,000 redundancies, primarily in the US, late last month as part of a process to “remove bureaucracy” at the firm. 

The company has been investing heavily in its AI business, including the rollout of its own AI chips and flagship AI model Nova. 

Amazon’s AI shopping assistant Rufus gained the ability to browse other retailers’ stores and even buy some of those products on behalf of a customer. Some independent retailers have objected to this, the Financial Times reported in early January. 

The company also announced last month that it was testing Amazon Now, its 30-minute delivery service, in the London borough of Southwark.