AWS CFO confident in AI spending sustainability amid market concerns

The CFO of Amazon Web Services, John Felton, has expressed confidence in the sustainability of AI spending, stating that it is driving meaningful innovation. His comments come amid investor concerns about an AI bubble, with worries over ballooning debt, corporate valuations, and whether revenue growth can keep pace with infrastructure costs. Felton highlighted that AWS's AI capital expenditures are yielding returns, supported by a nearly $500 billion order backlog as of Q2 2026. AWS reported $42.2 billion in revenue for Q2 2026, a 36.7% increase from the same period in 2025. Gartner's recent report warned that over $3.5 trillion in AI infrastructure spending could face impairment by year-end 2030. Despite these risks, AWS is positioned to weather them due to its diversified revenue streams. Felton emphasized his comfort with the current spending strategy, noting the broad range of customers, from large enterprises to small businesses. However, challenges such as backlash against data center construction remain, as communities raise concerns about environmental and energy impacts.