Amazon CEO Andy Jassy just explained why I think the AI infrastructure buildout is nowhere near finished. Amazon is planning to spend roughly $220 BILLION in capital expenditures in 2026, and according to Jassy, even that isn't enough to satisfy customer demand. AWS capacity for 2026 is already sold out, 2027 is largely sold out, and a significant portion of 2028 has already been committed to customers. One of the largest technology companies in the world is spending hundreds of billions of dollars building data centers, purchasing chips, securing power, and expanding its infrastructure, yet it still cannot build capacity fast enough to meet demand. What I found particularly interesting was his response to concerns about how the industry is going to finance all this spending. While financial markets are questioning whether there's enough capital available to fund the AI buildout, Amazon is dealing with the opposite problem. It has customers willing to purchase more computing capacity than it can currently provide. And this is something I think investors are overlooking. These companies aren't spending hundreds of billions simply because they expect AI demand to materialize someday. A meaningful portion of that future capacity is already being committed to customers years before it becomes operational. This also has enormous implications for the companies supplying the infrastructure. Every additional data center requires more memory, networking equipment, cooling systems, and electricity. And when customers are reserving computing capacity years in advance, it gives companies throughout the supply chain greater visibility into future demand. It also helps explain why I remain so bullish on memory, photonics, and power. These are some of the biggest constraints preventing companies like Amazon from expanding as quickly as they want.

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Amazon CEO Andy Jassy's advice for young people: AI will help you "invent in ways that just weren't possible" before, and critical thinking and human judgment will remain your edge. "You can't run away from it, and you can't wish it away. It's gonna be incredibly impactful in your life, in every experience that you try and use in your work... You need to learn about it. You need to educate yourself about it. You need to use it a lot. You need to try it." "I don't think it replaces critical reasoning and thinking." "If I think about business school as an example, you would get these three cases that you had to analyze every day, and you had to do a lot of reading, and you had to take notes, and you had to figure out what the key issues were... All that kind of goes away with AI." "AI is gonna be able to kind of get everybody to that advanced starting spot much more quickly." "The actual putting the dots and the pieces together, either to build a strategy or an approach or a plan or a new product or a new customer experience, I don't think AI is gonna do that for most people most of the time." "I still think you're gonna need human judgment and ingenuity and invention and experimentation and thinking about how all the pieces come together to end up building amazing experiences and businesses." @ajassy