Amazon CEO projects AI spending to exceed $220 billion by 2027

Amazon CEO Andy Jassy announced Thursday that the company expects to spend "meaningfully more" than $220 billion on AI infrastructure in 2027, even as its free cash flow has sunk to negative $42.4 billion over the trailing twelve months. Amazon reported third-quarter earnings that missed Wall Street expectations, with revenue and earnings below forecasts, causing shares to fall roughly 5% in after-hours trading. The company spent $75.9 billion in cash capital expenditures during the quarter alone, primarily on AWS and AI infrastructure, while AWS revenue rose 39.3% year over year to $46 billion. Jassy defended the spending as a "once-in-a-lifetime opportunity," citing strong customer demand visibility into 2027-2029, with AWS revenue projected to grow over 40% in both 2027 and 2028. However, analysts note power shortages and construction delays have slowed deployment of Nvidia server racks, raising concerns about the pace of turning investments into revenue.