No. of Recommendations: 2
Forgot to quote this bit. AMZN AI capex margins and returns tracking equal to or even greater than early AWS cloud.
Wink, Wink Nudge,Nudge.
Jassy: "We've done this before in the first era of cloud computing, just over a longer time horizon, where demand built more gradually than it has in AI.
But we see the margins and returns in AI tracking what we saw with core at the same point of evolution, actually, a little ahead. We now believe we will spend approximately $220 billion in cash CapEx in 2026, with the higher cost of memory pushing this number up from our prior estimate of about $200 billion. But even at that amount, we will still not have enough capacity to meet all the demand we have in 2026, and I believe this dynamic will also be true in 2027, too."
seekingalpha.com - Amazon com inc amzn q2 earnings call transcript 