Amazon Spent More on Data Centers Last Quarter Than AWS Earned in Revenue. Should Investors Worry?

Amazon spent $53 billion on capital expenditures in Q2 2026, exceeding AWS's $42 billion quarterly revenue, primarily for AI and cloud infrastructure. Management justifies the aggressive spending citing a $496 billion backlog and strong future demand, though free cash flow will face pressure until new data centers become operational. The company raised its 2026 capex forecast by $20 billion to $220 billion, betting on timing and future revenue growth.