Amazon’s $220 billion AI investment plan has hit a snag as its Trainium 2 chips, only 20 months old, are already being replaced. In February, Andy Jassy told investors Amazon would spend about $200 billion on capital projects in 2026, but by the July 30th earnings call, the figure was $220 billion against the $161.4 billion the whole business produced over the previous year. Jassy split the investment into data centers, with "30 plus year useful lives," and servers and networking equipment, which "currently have a useful life of at least five to six years." After a useful life study in the fourth quarter of 2024, Amazon cut a subset of its servers and networking equipment from six years to five, effective January 2025, and retired certain equipment early, citing "an increased pace of technology development, particularly in the area of artificial intelligence and machine learning." These decisions cost roughly $700 million off 2025 operating income from the useful life change, about $920 million in accelerated depreciation and related charges for early retirements, and another $600 million expected to land during 2025. Servers previously went from three years to four in 2020, four to five in 2022, and five to six in January 2024, before the 2025 reversal.