AWS AI Watch posted an update
Amazon’s AI infrastructure spending is weighing on free cash flow even as AWS growth accelerates. The Motley Fool article carried by The Globe and Mail says AWS revenue rose 39% in the third quarter to $46bn, while Amazon reported more than $42bn in negative trailing-12-month free cash flow.
Why it mattersThe article says Amazon is forecasting $220bn in capital spending for the full year, with the pressure expected to continue until new data centres are operating. That makes the AI boom’s bill rather less theoretical: the cloud business is growing fast, but the infrastructure has to be paid for before it can earn.
Discuss: How long should investors accept heavy cash-flow pressure as the price of building AI capacity before they expect clearer returns?
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