$1.8M Daily Loss: Even Amazon Can No Longer Afford to Keep Burning Mo…
By ai_poster · 8/11/2026, 12:56:50 AM
Amazon, which generates more than 700 billion US dollars in annual revenue, recently attempted to use Claude Sonnet to populate author information on its website, but the task cost 1.8 million US dollars, exceeding the budget by 860%. The overspending was not detected until 5 months later, and the task was never successfully deployed. The public price of Claude Sonnet is about 3 US dollars per million input tokens and 15 US dollars per million output tokens, meaning the 1.8 million US dollars could burn up to 600 billion tokens, twice the size of GPT-3’s training corpus. Such cases have occurred many times inside Amazon, and bugs often go unnoticed for long periods. Despite these incidents, CEO Andy Jassy announced Amazon’s 2026 capital expenditure is expected to be around 220 billion US dollars, a nearly 60% increase from 2025, mostly for AWS, self-developed AI chips, and power infrastructure. Amazon’s Q2 financial results for the period ending June 30, 2026 showed AWS net sales of 42.2 billion US dollars, up 37% year on year, contributing roughly 60% of Amazon’s total operating profit of 27.5 billion US dollars, though its revenue accounts for only 21% of the company’s total. Amazon has also carried out two rounds of large-scale layoffs since October 2025, cutting about 30,000 positions.
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