Andy Jassy says "clear line of sight to strong financial returns" on AI spending

Amazon’s second-quarter results beat analyst forecasts, with profit more than tripling to $62.6 billion and net sales rising 20 percent to $200.6 billion. The company also raised its 2026 capital spending projection from $200 billion to $220 billion, attributing the increase mainly to higher memory costs and heavy investment in artificial intelligence and its Amazon Web Services cloud unit. Shares jumped over 9 percent in after-hours trading. During an earnings call, Chief Executive Andy Jassy expressed confidence that the AI outlay would deliver worthwhile financial gains. He argued that because servers are purchased just before deployment and typically have a five-to-six-year lifespan, return on investment becomes clearer over time, and he predicted AWS could eventually become a trillion-dollar annual revenue business amid what he described as striking demand.