Amazon's $650B AI push continues as shares slide, Bezos loses $15B

Amazon shares declined on February 6, 2026, an event that erased approximately $15 billion from the net worth of founder Jeff Bezos. The Daily Mail reported on the personal financial impact to Bezos, whose wealth is heavily tied to his stake in the e-commerce and cloud computing giant.

In separate developments, this stock movement occurred amid a broader reassessment of artificial intelligence investments by Wall Street. According to the Fosstodon AI Timeline, also from February 6, a significant sell-off of AI stocks was underway, described as "The Great AI Reckoning." This trend saw the sector's hottest trades come under pressure from investors questioning the timeline for profitability and return on the massive capital expenditures required for AI development.

The context for these market movements includes the enormous financial commitments announced by major technology firms. On February 7, Bloomberg Technology reported that Big Tech companies had unveiled AI investment plans totaling $650 billion. These extensive plans are intended to fund the development of advanced data centers and computing infrastructure necessary to support next-generation AI models and services.

The immediate impact of the sell-off was a substantial reduction in market valuation for companies leading the AI charge, including Amazon. The combined reporting indicates that from its recent peak, Amazon lost $650 billion in market value. This volatility reflects growing investor apprehension over whether the projected revenues from AI services will materialize quickly enough to justify the current level of spending.

Analysis of the situation points to a market correction rather than a fundamental abandonment of AI technology. The Fosstodon AI Timeline report suggested Wall Street's enthusiasm was being tempered by more realistic assessments of the challenges involved, including the immense costs for hardware like advanced semiconductors and the competitive intensity of the cloud AI market. The high valuations of AI-centric companies had made them particularly vulnerable to a shift in investor sentiment.

In a related development, Bloomberg Technology noted that the announced $650 billion in AI investment plans had conversely sparked a rally in the semiconductor sector. Chip manufacturers that supply the critical components for AI data centers are positioned as likely beneficiaries of this long-term capital expenditure, indicating a complex and segmented market reaction to the same overarching trend of massive AI investment.