The AI race is forcing technology titans like Amazon to buy NVIDIA’s GB300 racks faster than they can be powered on, with a new report stating that the e-commerce giant received “$5 billion in deliveries” in the month of August, followed by $3 billion in shipments every month after that. The decision to order these racks in advance without having the infrastructure has resulted in its free cash flow dropping like flies, and according to the AWS CFO, the situation isn’t expected to improve for a couple more years.
Despite having no power for NVIDIA’s GB300 racks, Amazon’s capital spending is reportedly targeted at $200 billion for 2026
Additional details on Business Insider reveal that some AWS data centers reportedly have the physical space for the GB300 racks but not enough power to run them, so equipment is being staged in warehouses. Amazon also takes ownership of the hardware early, tying up cash well before the racks earn any…
https://wccftech.com/amazon-free-cash-flow-negative-ai-infrastructure-spending/
