Andy Jassy says Amazon will "spend meaningfully more in 2027" on AI infrastructure

Technology stocks slid Friday as investors weighed the cost of artificial-intelligence infrastructure, and Nvidia fell about 3% despite Amazon CEO Andy Jassy signaling that Amazon’s 2027 outlays would be larger. Amazon had reported a $42.4 billion free-cash outflow over 12 months and third-quarter capital expenditures of $77.3 billion, above the $58.7 billion analysts expected, while maintaining a roughly $220 billion capital-spending forecast for 2026. Jassy also said on the earnings call that commitments for Amazon’s Trainium chips had risen more than 20-fold. The comments matter because Amazon is a major buyer of Nvidia’s AI processors, and higher infrastructure budgets can support demand, but cloud companies are increasingly developing their own alternatives to Nvidia products. Analysts said the selling reflected doubts about whether the large AI investments will produce adequate returns.