Amazon expects to spend about $220 billion in capital expenditures in 2026, up from its previous estimate of around $200 billion, as rising costs for artificial intelligence memory chips drive higher infrastructure spending. Speaking during the company's second-quarter earnings call, CEO Andy Jassy said the rising cost of memory has become a major factor in Amazon's infrastructure spending as the company races to expand capacity for artificial intelligence workloads, Yahoo Finance reported. "The higher cost of memory is pushing this number up from our prior estimate of about $200 billion." According to Reuters, Amazon's capital expenditures are largely focused on expanding AI infrastructure, including new data centers, networking equipment and custom AI chips designed to power its cloud services. The world's largest technology companies continue to ramp up AI spending despite the enormous costs involved.