Overview
- Speaking on CNBC’s Mad Money, CEO Andy Jassy said heavy AI spending will reward investors after the stock recovered from February’s drop and set a new high.
- Amazon plans about $200 billion of 2026 capital spending focused on data centers and other AI infrastructure.
- He said Amazon must spend first and monetize later because long‑lived infrastructure like large data centers produces returns over many years.
- Jassy pointed to scale, saying AWS AI services run near $15 billion a year as FactSet pegs total AWS revenue around $166 billion this year.
- FactSet still forecasts negative free cash flow in 2026, which skeptics cite as a near‑term risk.