Amazon.com, Inc. (AMZN) raised its 2026 capital expenditure guidance to $220bn from $200bn on its July earnings call, primarily for artificial-intelligence infrastructure.

Executives said capacity for 2027 and 2028 had already been reserved, which the company presented as evidence of long-term demand visibility.

What that number is, in proportion

Capital expenditure of $220bn in a single year is larger than the annual revenue of most companies in the S&P 500. It is spending that converts into depreciation over subsequent years, which means it reduces reported profit for a long time after the cash goes out.

The two readings

One: demand is real, capacity is scarce, and reserving it early is what a company does when it can see the orders.

Two: reserved capacity is a commitment, not a sale. It obliges the company to pay whether or not the demand arrives.

Both readings use the same fact, and the company's own framing is the first.

What settles it

AWS revenue growth against depreciation, over several quarters. Capital spending that produces revenue is investment. Capital spending that produces depreciation without revenue is something else, and the gap between those two lines is where the difference appears.

Both are disclosed. We will read them from the filings.