Amazon Plans $200 Billion AI CapEx While Berkshire Sells All Shares
AMZN•Amazon plans $200 billion in capital expenditures for 2026, part of a $725 billion Big Tech AI capex surge that has driven $140 billion in investment-grade bond issuance. Berkshire Hathaway’s new CEO completely exited a 2.3 million-share Amazon holding to lock in gains, underscoring valuation concerns.
1. Amazon AI CapEx Plans
Amazon is planning $200 billion in capital expenditures for 2026, contributing to the Big Tech cohort’s collective $725 billion capex target—a 77% rise over last year’s $410 billion spend.
2. Bond Issuance Trend in Big Tech
AI-related companies have issued about $140 billion of investment-grade bonds year to date, representing 49% of total issuance, alongside $21 billion of high-yield debt, to finance AI infrastructure expansions.
3. Berkshire Hathaway Exits Amazon Position
In his first quarter as CEO, Greg Abel exited the full 2.3 million-share Amazon position at Berkshire Hathaway to secure profits and reallocated capital into Alphabet, highlighting concerns over Amazon’s valuation.
