Amazon to boost spending on AI and other technology by $20 billion after strong Q2 results

August 2, 2026 - 05:31

Amazon announced plans to raise its capital spending for the year by an extra $20 billion, with the bulk of that money going toward artificial intelligence and related technology. The move follows a strong second quarter, where the company posted better-than-expected profits and net sales, driven largely by the continued momentum of its cloud computing division, Amazon Web Services.

The Seattle-based company now expects total capital expenditures for 2024 to reach roughly $120 billion, up from an earlier forecast of around $100 billion. Executives said the additional investment will support data center expansion, custom chip development, and new AI tools for both enterprise customers and consumer services. The company is betting heavily on AI as a key growth engine, even as it continues to pour money into logistics and same-day delivery networks.

Revenue for the quarter came in at $148 billion, a 10% jump from the same period last year. Net income climbed to $13.5 billion, helped by strong advertising sales and a rebound in retail margins. AWS alone generated $26.3 billion in revenue, up 19% year over year, signaling that demand for cloud infrastructure remains robust despite broader economic uncertainty.

Chief Financial Officer Brian Olsavsky told analysts on a call that the company sees "significant opportunities" in generative AI and machine learning, and that the increased spending reflects confidence in long-term returns. He also noted that some of the capital will go toward upgrading existing facilities and improving energy efficiency, as data centers become more power-hungry.

Investors reacted positively, with shares rising about 4% in after-hours trading. The announcement comes as other big tech firms, including Microsoft and Alphabet, have also ramped up AI-related spending, intensifying competition for talent and computing resources. Amazon's move suggests it intends to stay at the forefront of that race, even if it means tighter margins in the short term.