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Amazon reported strong revenue and AWS growth but sparked investor concern with $200 billion planned AI-related capex, causing a 10% stock drop despite CEO reassurance about long-term returns.
Amazon plans $200 billion capex mainly for AWS AI infrastructure through 2026, driving long-term revenue growth despite near-term margin pressure amid strong AI demand and partnerships with OpenAI.
Microsoft, Alphabet, Meta, and Amazon boost AI-related capital spending, signaling confidence in long-term growth despite investor caution about overcapacity risks.