'You've taken us free cash flow negative as a company, so congratulations': Amazon has plenty of Nvidia GPUs, but not enough energy to power its AI boom
Meanwhile, the RTX 5090 remains missing in action.
Nvidia's RTX 5090 GPU is scarce and priced at around $9,000 on reseller marketplaces. Amazon, along with other business customers, is facing supply chain issues which are exacerbating the lack of availability of these GPUs to PC gamers. AWS recently added $5 billion worth of Nvidia GB300 racks to its inventory in August, with similar monthly acquisitions.
Despite this, AWS is struggling with energy supply to power the new hardware, leading to a drop in free cash flow from $53 billion to $7.6 billion. AWS CFO John Felton joked that the company has taken Amazon free cash flow negative. The situation is further complicated by the Early Rack Receipt process, where AWS pays for the racks before they can be installed.
AWS continues to invest heavily in AI infrastructure, with revenue growing 37% year-over-year to $42.2 billion. Amazon CEO Andy Jassy is confident about the financial returns on this investment, but in the short term, many of these costs may go unused due to power constraints.
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