Shares in Amazon (AMZN) stock rose on Monday following the company’s announcement of a new $50 billion investment in artificial intelligence in the US. The e-commerce giant said on Monday it would invest up to $50B to expand AI and supercomputing capacity for U.S. government customers. The deal is one of the largest cloud infrastructure commitments targeted at the public sector.
Per a Reuters report, the project is expected to break ground in 2026. It will add nearly 1.3 gigawatts of new AI and high-performance computing capacity across AWS Top Secret, AWS Secret, and AWS GovCloud regions through new data centers equipped with advanced compute and networking systems. AMZN shares are up over 2% on Monday.
“Our investment in purpose-built government AI and cloud infrastructure will fundamentally transform how federal agencies leverage supercomputing,” AWS Chief Executive Matt Garman said. “We’re giving agencies expanded access to advanced AI capabilities that will enable them to accelerate critical missions from cybersecurity to drug discovery.”
Furthermore, Amazon (AMZN) continues to put the hammer on topping its rivals in AI development and investments. Last month, Chief Financial Officer Brian Olsavsky said that capital spending would come in at around $34.2 billion in the current quarter and reach $125 billion this year before increasing in 2026. While some experts on Wall Street have worried that the investments wouldn’t see a positive return, AMZN stock has remained a top pick among Magnificent-7 stocks in 2025. In the last six months, AMZN has rebounded from its April slump by nearly 12%.