Amazon Raises AI Spending to $220 Billion Amid Memory Chip Price Surge

Amazon's AI spending has increased to $220 billion for 2026, up from its previous estimate of $200 billion. This significant hike is mainly due to rising memory chip costs.

The overall trend in AI spending is staggering, with some estimates suggesting a 500% increase since 2022. Amazon believes it won't be able to meet demand even at the current spending rate.

This rapid growth in AI spending has drawn comparisons to the dot-com boom of the early 2000s, which ultimately led to a bust. The article warns that overspending on AI could have negative consequences for companies like Amazon.