Amazon, $AMZN, becomes the fifth stock to surpass $3 trillion in market cap
Source: Hedgeye
Amazon $AMZN on raising 2026 cash CapEx to $220B:
“The higher cost of memory is pushing this number up from our prior estimate of about $200 billion.” “Even at that amount, we will still not have enough capacity to meet all the demand we have in 2026. I believe this dynamic will also be true in 2027.” “The demand we already have for 2028 is striking.” “We typically purchase servers and networking equipment a few months before putting them into service, so we have strong visibility into customer demand before we trigger the spend.” “If the demand isn’t there, we won’t spend the capital for servers and networking equipment.” Source: Wall ST Engine
Amazon has spent more building out its business over the past 3 years than in the previous 26 combined.
Source: Hedgeye
🚨 The cloud just became a battlefield. An Amazon Web Services data center in the UAE just got hit ‼️
For the first time in history, a hyperscaler data center was physically struck during a war. An Amazon Web Services facility in the hashtag#UAE went offline after “objects struck” it—AWS’s carefully chosen words for what appears to be missile or drone debris. Power was cut. One availability zone went dark. Others stayed up. If reports from The Jerusalem Post are accurate that the facility supported Israeli military workloads, the implications are massive: dual-use cloud infrastructure just became a legitimate military target. That collapses a long-standing assumption: Data centers are civilian assets protected by fences and biometrics—not by missile defense systems. AWS, Azure, and Google Cloud all cluster regions in the same conflict-adjacent corridor. Oracle operates infrastructure in Dubai Will Wall Street price in this new risk for the hyper-scalers? Source: Shanaka Anslem Perera
Amazon Is Hiring Robots While Cutting Human Jobs
Source: Visual Capitalist
To put things in perspective...
The Amazon $AMZN CAPEX estimates ($200B for 2026) aren’t even on the screen on the Bloomberg GF page yet… Source: Bloomberg, RBC
🚨 AI Power Shift Alert 🚨
Amazon is in talks to invest $10B+ in OpenAI, pushing its valuation north of $500B. But this isn’t just about capital. It’s about control of the AI stack. 🔹 OpenAI would use Amazon Trainium AI chips 🔹 Rent massive AWS data-center capacity 🔹 Deepen infrastructure dependence beyond Microsoft This comes right after OpenAI restructured its relationship with Microsoft, unlocking deals with rival cloud providers. 💡 What’s happening behind the scenes: OpenAI already committed $38B over 7 years to Amazon servers Has $1.5T (!) in long-term infrastructure deals with Nvidia, Oracle, AMD & Broadcom Nvidia alone plans up to $100B in a multi-year partnership 🤔 Investors are uneasy. Many of these deals are circular — suppliers invest in OpenAI, OpenAI buys their hardware, and sometimes takes equity in return. Meanwhile, rivals aren’t standing still: Anthropic has raised ~$26B from Amazon, Google, Microsoft & Nvidia Amazon alone has put $8B into Anthropic since 2023 ⚠️ Key limitation: Amazon still won’t get rights to OpenAI’s most advanced models — Microsoft keeps exclusivity until the early 2030s. 🛒 Bonus twist: Amazon and OpenAI are also discussing e-commerce integrations, as OpenAI expands beyond chat into platforms like Etsy, Shopify & Instacart. 📌 Big takeaway: The AI race is no longer about models. It’s about chips, clouds, capital, and distribution — and Big Tech is locking it all down fast.
After Google, now Amazon
*AMAZON SAYS NEW CHIPS ARE MORE COST EFFECTIVE THAN NVIDIA'S Source: ©️redit From Ⓜ️acro to Ⓜ️icro @Credit_Junk Bloomberg
