Amazon's Power Play: Betting Billions on Atoms, AI, and Satellites

Amazon commits hundreds of billions to AI, satellite internet with Globalstar, nuclear power via X-Energy IPO, and a new AI drug discovery platform, targeting 2026-2028 milestones.

Amazon is making aggressive moves on multiple technological frontiers, committing hundreds of billions to secure its future in the AI era. This week, the tech giant’s strategy came into sharp focus through a major IPO for a nuclear partner, the launch of a specialized AI platform for drug discovery, and the confirmation of a massive satellite acquisition.

The company confirmed its acquisition of satellite operator Globalstar for approximately $11.57 billion. The deal, structured at $90 per share or an exchange ratio of 0.3210 Amazon shares, is expected to close in 2027. Amazon is targeting the L-Band and S-Band frequency spectrum for its "Project Leo" satellite initiative, a direct challenge to systems like Starlink. Regulatory pressure is mounting, as the company must have 1,600 satellites in orbit by July 2026, with a full device-to-satellite system targeted for 2028.

Simultaneously, Amazon is pushing forward with its energy ambitions. X-Energy, a nuclear energy company backed by Amazon, has launched its IPO roadshow. The Maryland-based firm aims for a valuation of up to $7.51 billion by offering nearly 43 million shares priced between $16 and $19, seeking to raise around $814 million. Amazon, which led a $500 million Series C-1 funding round, has committed to purchasing up to five gigawatts of nuclear power from X-Energy by 2039. The small modular reactor (SMR) technology is crucial for powering Amazon's expanding AI and data center infrastructure. This IPO marks a pivotal moment for investors who have poured about $1.8 billion into the company.

In the realm of artificial intelligence, Amazon Web Services (AWS) unveiled "Amazon Bio Discovery," a no-code AI platform designed for early-stage pharmaceutical research. The tool allows scientists without programming skills to generate and evaluate biological molecules, compressing a process that once took months into weeks. Early adopters include Bayer, the Broad Institute, and Voyager Therapeutics. In a demonstration of its capability, a collaboration with Memorial Sloan Kettering Cancer Center generated roughly 300,000 antibody molecules, narrowing them down to 100,000 lab candidates. AWS CEO Andy Jassy noted that the company's AI services are already achieving an annualized revenue run rate exceeding $15 billion, with its custom chip business surpassing $20 billion.

These colossal initiatives are underpinned by record-breaking capital expenditure. Amazon has outlined plans for roughly $200 billion in investments for 2026, primarily directed toward AI infrastructure, its proprietary Trainium chips, and satellite network construction. Analysts at Evercore ISI view 2026 and 2027 as the peak of this investment cycle but consider Amazon attractively positioned for the long term.

The market has responded positively. Amazon's stock recently traded at 210.90 euros, posting a strong monthly gain of over 13%. It is now within roughly 4% of its 52-week high of 220.55 euros. Rosenblatt Securities reaffirmed its Buy rating with a $296 price target, while Citizens JMP sees $315 as achievable.

However, not all internal changes have gone smoothly. Amazon recently retreated from a planned change to its advertising billing system for third-party sellers, which would have automatically deducted ad costs from seller revenue. Facing a coordinated revolt and a threatened one-day advertising boycott on April 15, the company postponed the policy's implementation until August 1, 2026. The advertising division, which reported Q4 2025 revenue of $21.3 billion—a 23% year-over-year increase—remains a critical profit pillar where even minor billing adjustments can have significant financial repercussions.

All eyes are now on Amazon's upcoming first-quarter 2026 earnings report, scheduled for April 29, where the progress of these multi-billion dollar bets will be closely scrutinized.