Amazon Dives Deeper into AI with $220 Billion Investment
Amazon.com, Inc. (AMZN) is making significant investments in its artificial intelligence (AI) and logistics capabilities. The company plans to add two million NVIDIA GPUs to its Amazon Web Services (AWS) cloud infrastructure between 2027 and 2028, building on the one million it will deploy in 2026. This expansion will also include NVIDIA CPU nodes, NVLink Fusion, Nemotron support on Bedrock/SageMaker, Nitro/EFA networking, and 100k GPUs for U.S. federal AI.
Amazon's capital spending is expected to reach $220 billion in 2026, a $20 billion increase from the previous plan. This investment is driven by continued growth in AWS and cloud infrastructure. The company aims to achieve breakeven on its AI infrastructure spend within two to three years, citing stronger demand for AI services.
The company is also exploring opportunities to host Moonshot AI's Kimi K3 model on AWS, discussing revenue-share agreements up to 30% and data access terms. Amazon is building Project Tetromino, a robot-driven automated delivery system designed to sort and stage packages faster than current stations.