"Congratulations on turning your cash flow negative!" Inside Amazon's AI infrastructure spending spree exposed

What happened: Amazon is receiving Nvidia GB300 server racks worth $5 billion in August 2026 and about $3 billion per month afterward, but some data centers lack the power to run them, so the racks sit in warehouses. Key numbers: 2026 capex forecast $220 billion, nearly four Why it matters: Amazon pays for equipment earlier under its Early Rack Receipt process, so delays in power, construction, or installation can raise costs before revenue arrives. AWS CFO John Felton joked that infrastructure head Prasad Kalyanaraman turned free cash flow negative, and Kalyanaraman did not dispute it.

Amazon is receiving Nvidia GB300 server racks worth $5 billion in August 2026 and about $3 billion per month afterward, but some data centers lack the power to run them, so the racks sit in warehouses.

Amazon pays for equipment earlier under its Early Rack Receipt process, so delays in power, construction, or installation can raise costs before revenue arrives. AWS CFO John Felton joked that infrastructure head Prasad Kalyanaraman turned free cash flow negative, and Kalyanaraman did not dispute it.