AI cloud boom tests whether massive infrastructure spending will pay off

Amazon plans about $220 billion in 2026 capital spending, largely for AWS, even as AWS growth accelerates to roughly 39% and its backlog reaches $578 billion. Negative free cash flow and investor concern sharpen questions about capacity, demand and returns; Jassy’s forecasts of further growth and a trillion-dollar AWS business remain projections. Alphabet’s reported 12.6% plunge and roughly $500 billion market-value loss after earnings add to scrutiny of AI spending and search monetization, though coverage dates and some figures need verification.