Finance
Amazon pledges up to $50 billion to expand AI, supercomputing for US government
Published by Global Banking and Finance Review
Posted on November 24, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on November 24, 2025
2 min readLast updated: January 20, 2026
Amazon pledges $50 billion to enhance AI and supercomputing for U.S. government, expanding AWS capabilities and infrastructure by 2026.
(Reuters) -Amazon.com said on Monday it would invest up to $50 billion to expand AI and supercomputing capabilities for Amazon Web Services U.S. government customers, in one of the largest cloud infrastructure commitments targeted at the public sector.
The project, expected to break ground in 2026, will add nearly 1.3 gigawatts of artificial intelligence and high-performance computing capacity across AWS Top Secret, AWS Secret and AWS GovCloud regions by building data centers equipped with advanced compute and networking technologies.
AWS cloud regions for U.S. government are based on increasing levels of data sensitivity. The cloud unit currently serves more than 11,000 U.S. government agencies.
Tech companies, including OpenAI, Alphabet and Microsoft, are pouring billions of dollars to develop AI infrastructure, boosting demand for computing power required to support the services.
One gigawatt of computing power is roughly enough to power about 750,000 U.S. households on average.
"This investment removes the technology barriers that have held government back," AWS Chief Executive Matt Garman said. Amazon did not disclose the timeline for the spending.
Under the latest initiative, federal agencies will gain access to AWS' comprehensive suite of AI services, including Amazon SageMaker for model training and customization, Amazon Bedrock for deploying models and agents, as well as foundation models such as Amazon Nova and Anthropic Claude.
The federal government seeks to develop tailored AI solutions and drive significant cost savings by leveraging AWS' dedicated and expanded capacity.
The push also comes as the U.S., along with other countries such as China, intensifies efforts to advance AI development and secure leadership in the emerging technology.
The White House did not immediately respond to a Reuters request for comment.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Shilpi Majumdar)
Artificial intelligence (AI) refers to the simulation of human intelligence in machines programmed to think and learn. AI can perform tasks such as problem-solving, speech recognition, and decision-making.
Cloud computing is the delivery of computing services over the internet, allowing users to access and store data and applications on remote servers instead of local computers.
A data center is a facility used to house computer systems and associated components, such as telecommunications and storage systems. It is essential for managing and storing large amounts of data.
High-performance computing (HPC) involves the use of supercomputers and parallel processing techniques to solve complex computational problems that require significant processing power.
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