Amazon stockpiles Nvidia AI hardware ahead of power availability -Business Insider

What happened: Amazon agreed to buy billions of dollars of Nvidia GPUs before its data centers have the power to run them, creating an "Early Rack Receipt" program per internal August emails obtained by Business Insider. Key numbers: About $5 billion in Nvidia GB300 server racks at U.S. facilities, with plans to accept an additional $3 billion monthly. Why it matters: Taking delivery earlier ties up capital before the equipment can generate cloud revenue, and Amazon swung to negative free cash flow last quarter for the first time since 2023. Amazon calls the staging a routine best practice. Market: +0.1% today ($262.63), +16.0% YTD, 1.0x vol — as of 21:02 UTC

Amazon agreed to buy billions of dollars of Nvidia GPUs before its data centers have the power to run them, creating an "Early Rack Receipt" program per internal August emails obtained by Business Insider.

Taking delivery earlier ties up capital before the equipment can generate cloud revenue, and Amazon swung to negative free cash flow last quarter for the first time since 2023. Amazon calls the staging a routine best practice. Market: +0.1% today ($262.63), +16.0% YTD, 1.0x vol — as of 21:02 UTC