Amazon CEO says massive AI spending is a long-term growth bet, not a risk to profits.

Amazon CEO Andy Jassy emphasized that the company's large investment in artificial intelligence represents a once-in-a-generation opportunity that will drive long-term growth and returns. Despite concerns about negative free cash flow projected for 2026, Jassy explained that Amazon invests heavily ahead of demand, particularly in AI infrastructure, which takes years to monetize but ultimately leads to strong profits and cash flow. He cited the rapid growth of Amazon Web Services as proof that such investments pay off over time, comparing the current AI investment scale to AWS's early years. Jassy reassured investors that the company’s strategy of upfront capital expenditure will yield significant returns as revenue catches up.