Amazon says it plans to spend around $200 billion on capital investments in 2026, largely focused on artificial intelligence, robotics and cloud infrastructure, as it reported quarterly revenue of $213 billion on Thursday. The announcement came just one day after the Washington Post, owned by Amazon founder Jeff Bezos, laid off roughly a third of its workforce, prompting renewed scrutiny of the contrasting trajectories of the tech giant and the newspaper.
Chief executive Andy Jassy said Amazon would sharply increase capital spending from $125 billion last year, far exceeding market expectations. The company cited strong demand for AI services, chips, robotics and satellite technology as key drivers. Amazon's fourth-quarter revenue rose 14% year on year, while net income reached $21.2 billion, though earnings per share came in slightly below Wall Street forecasts. Growth in Amazon Web Services accelerated to its fastest pace in more than three years, with revenue rising 24%.
Bezos, who stepped down as Amazon CEO in 2021 and now serves as executive chair, bought the Washington Post in 2013. Former executive editor Marty Baron warned that the scale of the layoffs risked weakening the newspaper's long-term prospects. Amazon shares fell nearly 9% in after-hours trading following the earnings release, trimming Bezos's net worth despite the company's aggressive investment plans...