Amazon Raised 2026 CapEx by $20 Billion— but CEO Andy Jassy Won't Say How It's Paying for It: 'Nothing to Share...'

Namrata Sen

Sun, August 2, 2026 at 1:30 AM GMT+3 5 min read

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Just weeks after its latest bond sale, Amazon.com Inc. told Wall Street it now needs an additional $20 billion in capex beyond its original plan.

On Thursday, CEO Andy Jassy announced the e-commerce giant is raising its 2026 capital spending target from $200 billion to $220 billion, due to soaring memory chip prices.

During the second-quarter earnings call, when an analyst asked about Amazon's funding strategy for future AI and infrastructure expansion, Jassy demurred: "Nothing to share today."

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Jassy said Amazon has already tapped the debt markets this year and still has multiple financing options available as it continues investing in Amazon Web Services (AWS) growth, adding that the company will choose the most appropriate funding method when needed.

The CEO said that even with $220 billion in capital spending, Amazon still won't have enough capacity to meet all customer demand this year. "I believe this dynamic will also be true in 2027 too," he added. "In fact, the demand we already have for 2028 is striking," he said.

AWS Booms, Cash Flow Slides

AWS posted 37% revenue growth to $42.2 billion in the second quarter, beating analysts' expectations of a 31.2% increase. CEO Andy Jassy called it AWS' fastest growth in 18 quarters, adding that both Amazon's AI and chip businesses have surpassed $25 billion in annualized revenue run rates.

Amazon's free cash flow swung into the red, falling to negative $7.6 billion over the trailing 12 months in the second quarter, down from positive $18.2 billion a year earlier.

Earlier this month, Amazon said it plans to raise $25 billion through a multi-tranche U.S. dollar bond sale to support corporate needs, including AI-driven capital expenditures and upcoming debt repayments. The offering spans eight tranches with maturities from 2029 to 2066. In March, the company raised $37 billion in an oversubscribed bond sale.

The company had told its underwriters it does not plan to issue any additional debt this year, reported CNBC.

Amazon did not immediately respond to Benzinga's request for comments.

Debt Fears Grow With AI Spend

Despite strong revenue growth and operating cash flow, Alphabet Inc., Amazon, Meta Platforms, Inc. and Oracle Corp. are expected to see forward free cash flow shrink to near zero—or turn negative—as AI-driven data center spending surges.

Moody's estimates sector capex could reach $785 billion in 2026 and nearly $1 trillion in 2027, prompting hyperscalers to issue around $175 billion in debt this year, far above the five-year average of $30 billion.

Shay Boloor, chief market strategist at Futurum Equities, said investors are underestimating the extent to which AI is reshaping Big Tech, forcing companies to shift from asset-light models to ones that require massive infrastructure spending. Meanwhile, bond investors are growing more cautious, with credit spreads on major hyperscaler debt widening to about 78 basis points from 50 basis points in just two months, reflecting increased concerns over rising capital needs.

Image via Shutterstock

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