According to CoinMeta, Amazon plans to incur $220 billion in capital expenditures in 2026. Despite a 37% increase in revenue from AWS (Amazon Web Services), free cash flow dropped to -$7.6 billion, mainly due to the impact of AI infrastructure costs. Amazon is investing at an unprecedented pace to expand its artificial intelligence infrastructure, with capital expenditures expected to reach $220 billion in 2026. According to its second-quarter financial report, operating cash flow increased by 33% to $161.4 billion, but free cash flow fell from $18.2 billion a year ago to -$7.6 billion, reflecting a year-over-year increase in net property and equipment purchases of $66.1 billion. AWS revenue in the second quarter reached $42.2 billion, with operating income at $16.6 billion, and the backlog of contracts expanded to approximately $496 billion. Amazon CEO Andy Jassy stated that it is expected to continue facing insufficient capacity to meet demand until 2027. AWS Infrastructure executives are managing risks related to power connections, labor availability, and equipment delivery. Amazon believes that infrastructure costs arise before generating revenue, making negative free cash flow a temporary consequence of rapid expansion, rather than evidence of weak customer demand.