Amazon Raises Annual Capital Expenditure Forecast to $220 Billion Amid Rapid AI Expansion

Amazon has lifted its annual capital expenditure forecast to $220 billion from $200 billion as it accelerates artificial intelligence infrastructure deployment. The expanded guidance follows Amazon's Q2 FY2026 performance, where it reported $200.61 billion in total revenue and $54.21 billion in capex, alongside negative trailing free cash flow of $7.6 billion. Amazon Web Services generated $42.23 billion in Q2 revenue, reflecting 37% year-over-year growth, and recently achieved an annual revenue run rate of $169 billion. In addition, Amazon's generative AI services and proprietary custom chips have each reached annual run rates surpassing $25 billion.