Amazon has signaled an unprecedented $200 billion capital expenditure for 2026, representing a significant increase from prior year investments. This forecast underscores the company’s aggressive push into AI infrastructure as it seeks to expand data center capacity and cloud services operations.

The hefty capex projection raises expectations of limited or negative free cash flow next year, contrasting sharply with peers like Microsoft targeting a 22% FCF margin. This spending profile has intensified investor scrutiny over Amazon’s capital efficiency and potential pressure on its valuation.