AI Daily: Amazon to invest up to $50B to expand AI infrastructure for U.S. Gov

Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly:

AI INFRASTRUCTURE: Amazon (AMZN) announced an investment of up to $50B to expand AI and supercomputing capabilities for Amazon Web Services U.S. government customers. “This investment, set to break ground in 2026, will add nearly 1.3 gigawatts of AI and supercomputing capacity across AWS Top Secret, AWS Secret, and AWS GovCloud Regions by building data centers with advanced compute and networking technologies. Federal agencies will gain access to AWS’s comprehensive AI services, including Amazon SageMaker AI for model training and customization, Amazon Bedrock for model and agent deployment, Amazon Nova, Anthropic Claude, and leading open-weights foundation models, and AWS Trainium AI chips, as well as NVIDIA AI infrastructure, equipping agencies to develop custom AI solutions, optimize massive datasets, and enhance workforce productivity. These new capabilities will be available to existing and future U.S. government customers across AWS Top Secret, AWS Secret, and GovCloud Regions, strengthening America’s AI leadership and giving federal agencies the secure, scalable infrastructure they need for the next era of innovation,” the company stated.

AWS CEO Matt Garman added, “Our investment in purpose-built government AI and cloud infrastructure will fundamentally transform how federal agencies leverage supercomputing. We’re giving agencies expanded access to advanced AI capabilities that will enable them to accelerate critical missions from cybersecurity to drug discovery. This investment removes the technology barriers that have held government back and further positions America to lead in the AI era.”

STATE LAWS ON AI: The White House has put on hold a draft executive order that would seek to preempt state AI laws, following bipartisan backlash, Reuters‘ Karen Freifeld reported on Friday.

NVIDIA CHIPS: President Donald Trump’s team has held internal talks in recent days on whether to let Nvidia (NVDA) sell its H200 artificial intelligence chips to China, people familiar with the matter told Bloomberg‘s Mackenzie Hawkins and Jenny Leonard. Such a “contentious” potential move would mark a major win for the company, the authors say, noting that no final decision has been made and it’s possible that the notion remains an internal debate. Shares of Nvidia are up about 1% in afternoon trading.