Amazon expects to spend about $220 billion in capital expenditures in 2026, up from its previous estimate of around $200 billion, as rising costs for artificial intelligence memory chips drive higher infrastructure spending. Speaking during the company's second-quarter earnings call, CEO Andy Jassy said the rising cost of memory has become a major factor in Amazon's infrastructure spending as the company races to expand capacity for artificial intelligence workloads. "We now believe we will spend approximately $220 billion in cash capex in 2026," Jassy said. "The higher cost of memory is pushing this number up from our prior estimate of about $200 billion." Jassy added that even with the higher investment, Amazon is unlikely to have enough computing capacity to satisfy customer demand next year. "Even at that amount, we will not have enough capacity to meet all the demand we have in 2026, and I believe this dynamic will also be true in 2027. In fact, the demand we already have for 2028 is striking," he said. Amazon Web Services (AWS) remains the biggest recipient of those investments as businesses continue deploying generative AI applications. Amazon's capital expenditures are largely focused on expanding AI infrastructure, including new data centers, networking equipment and custom AI chips. Beyond data centers, Amazon is also investing in its in-house silicon, Project Kuiper satellite network and robotics technologies, although AI infrastructure remains the largest driver of spending. Advanced memory technologies such as high-bandwidth memory (HBM)