AWS executives told staff in September that Amazon’s AI data center spending has made the company free cash flow negative and will likely keep it there for a couple more years, according to a meeting recording obtained by Eugene Kim at Business Insider. Infrastructure chief Prasad Kalyanaraman called Amazon’s AI and machine learning unit “hugely free cash flow negative,” and said he now expects demand to exceed AWS capacity in 2027 too. Amazon is also spending cash sooner under a new process that has it taking ownership of Nvidia GB300 racks before they reach a data center, starting with about $5 billion worth in August and roughly $3 billion a month after that. Some sites had space but not enough power, so racks sat in warehouses, which Amazon says is standard practice.
