Amazon (AMZN) will invest $50 billion to grow its AI offerings for the US government, the company said on Monday. The investment will include nearly 1.3 gigawatts of new data center capacity for Amazon’s AWS Top Secret, AWS Secret, and AWS GovCloud services.

Amazon stock rose more than 1% on the news.

Amazon said its latest announcement will give federal agencies access to the company’s Amazon SafeMaker AI for model training, Amazon Bedrock for AI agent deployment, Amazon Nova, Anthropic’s (ANTH.PVT) Claude, Amazon’s Tranium AI chips, and Nvidia’s (NVDA) AI infrastructure.

All of that will enable the government to utilize AI tools that Amazon said help with simulation and data modeling, faster global security data processing, and improved supply chain information. The company said the arrangement will also help with defense strategies by processing satellite imagery and sensor data to detect threats and create response plans.

“Our investment in purpose-built government AI and cloud infrastructure will fundamentally transform how federal agencies leverage supercomputing,” Amazon AWS CEO Matt Garman said in a statement.

“We’re giving agencies expanded access to advanced AI capabilities that will enable them to accelerate critical missions from cybersecurity to drug discovery,” he added. “This investment removes the technology barriers that have held government back and further positions America to lead in the AI era.”

Until recently, Amazon has largely been seen as an also-ran in the AI race. Earlier this month, the company entered into a $38 billion agreement with OpenAI that will see Amazon provide OpenAI with access to its data centers and chips for seven years.

Amazon also launched its massive Project Rainier AI cluster in October, which will help power Anthropic’s AI services.

The announcement comes amid Big Tech’s ongoing AI spending spree that will see Amazon pump upwards of $125 billion into its data center projects in 2025. The company said it will spend even more during 2026.

Fellow tech giant Meta (META) is projected to spend between $70 billion and $72 billion in 2025. Microsoft (MSFT) said it expects to spend more in 2026 than the $88.2 billion the company spent during its fiscal 2025.

Google (GOOG, GOOGL), which anticipates spending $91 billion to $93 billion in 2025, said it will also spend more in the year ahead.

OpenAI (OPAI.PVT), meanwhile, has committed to spending more than $1 trillion on data center and AI chip deals.

And monetizing all of those investments is paramount for the tech companies if they are going to keep Wall Street happy.

Amazon (AMZN) will invest $50 billion to grow its AI offerings for the US government, the company said on Monday. The investment will include nearly 1.3 gigawatts of new data center capacity for Amazon’s AWS Top Secret, AWS Secret, and AWS GovCloud services.

Amazon stock rose more than 1% on the news.

Amazon said its latest announcement will give federal agencies access to the company’s Amazon SafeMaker AI for model training, Amazon Bedrock for AI agent deployment, Amazon Nova, Anthropic’s (ANTH.PVT) Claude, Amazon’s Tranium AI chips, and Nvidia’s (NVDA) AI infrastructure.

All of that will enable the government to utilize AI tools that Amazon said help with simulation and data modeling, faster global security data processing, and improved supply chain information. The company said the arrangement will also help with defense strategies by processing satellite imagery and sensor data to detect threats and create response plans.

“Our investment in purpose-built government AI and cloud infrastructure will fundamentally transform how federal agencies leverage supercomputing,” Amazon AWS CEO Matt Garman said in a statement.

“We’re giving agencies expanded access to advanced AI capabilities that will enable them to accelerate critical missions from cybersecurity to drug discovery,” he added. “This investment removes the technology barriers that have held government back and further positions America to lead in the AI era.”

Until recently, Amazon has largely been seen as an also-ran in the AI race. Earlier this month, the company entered into a $38 billion agreement with OpenAI that will see Amazon provide OpenAI with access to its data centers and chips for seven years.

Amazon also launched its massive Project Rainier AI cluster in October, which will help power Anthropic’s AI services.

The announcement comes amid Big Tech’s ongoing AI spending spree that will see Amazon pump upwards of $125 billion into its data center projects in 2025. The company said it will spend even more during 2026.

Fellow tech giant Meta (META) is projected to spend between $70 billion and $72 billion in 2025. Microsoft (MSFT) said it expects to spend more in 2026 than the $88.2 billion the company spent during its fiscal 2025.

Google (GOOG, GOOGL), which anticipates spending $91 billion to $93 billion in 2025, said it will also spend more in the year ahead.

OpenAI (OPAI.PVT), meanwhile, has committed to spending more than $1 trillion on data center and AI chip deals.

And monetizing all of those investments is paramount for the tech companies if they are going to keep Wall Street happy.