Amazon takes Nvidia racks early as power gaps strain AWS cash

Amazon’s AWS has begun taking ownership of Nvidia GB300 server racks before its data centers have enough power to run them, leaving the equipment idle in warehouses and unable to generate revenue. Internal emails from August showed initial rack receipts of about $5 billion and $3 billion a month afterward, though those figures were forecasts rather than confirmed purchases. AWS previously took ownership when racks reached their sites; it now pays before installation or electricity is available, adding cash-flow pressure as the systems lose value. Amazon is projected to spend $220 billion on capital investment in 2026, and AWS infrastructure executive Prasad Kalyanaraman told a September staff meeting that the AI business was hugely negative in free cash flow.