The scale of the buildout has caused bottlenecks at some AWS data centers, which possess the physical space for new hardware but lack the power required to activate it. To secure its supply chain, Amazon is taking ownership of equipment early and storing the units in warehouses, which ties up capital before the racks can be deployed.
Tuesday, October 20, 2026
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Amazon Projects Negative Free Cash Flow From $220B AI Spend
AI1 day ago
Prasad Kalyanaraman, AWS vice president of infrastructure, cautioned that the current pace of cloud buildout may create internal budget pressures for at least two years. This financial shift stems from a $220 billion investment program for artificial intelligence that has already pushed the company's overall free cash flow into negative territory, according to internal communications and AWS CFO John Felton. Internal emails show Amazon projected $5 billion in Nvidia GB300 rack deliveries in August, followed by monthly shipments of approximately $3 billion.
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