Amazon is raising the prices it charges customers to rent AI chips through its cloud business. Management said in July that Amazon would lack the data center capacity to meet demand in 2026, and probably in 2027. Will the higher prices reach AWS revenue soon, when most of its AI capacity is already sold on multi-year contracts?
AMZN metrics > Market Cap $2.7T · Revenue $776B · Growth 15.8% · Op Margin 12.1% · P/E 19.8x
What Happened
Amazon’s higher prices for renting out AI chips became public on October 2, 2026. It was reported the same day that Amazon is also moving Nvidia processors off its balance sheet. Both moves land in Amazon Web Services (AWS), the segment that rents out computing power to businesses.
What Changed
On its second-quarter 2026 call on July 30, management raised its 2026 cash capital spending plan to about $220 billion, from about $200 billion. The reason it gave was the higher cost of memory. Over the past twelve months, Amazon spent…
