ChipsThe story, in brief
AWS is ‘booming,’ but Amazon’s free cash flow turns negative on record AI spending
Amazon's free cash flow just went negative for the first time since 2023. The reason: record AI data-center spending.
The KeyNews take
Why it matters
Amazon is making a massive bet on AI infrastructure buildout, willing to sacrifice near-term cash flow to secure compute capacity. This signals the intensity of competition for data-center dominance and the capital intensity reshaping cloud economics.
The key facts
5 to knowQ2 2026 revenue: $200.6B, up 20% YoY
AWS revenue growth: 37%, fastest pace since end of 2021
Free cash flow: turned negative for first time since 2023
Driver: record AI data-center capex
AWS remains growth engine despite broader FCF headwind
Go to the source
GeekWiregeekwire.com
Publisher excerpt: Amazon reported $200.6 billion in second-quarter revenue, up 20%, with AWS growing 37%, its fastest pace since the end of 2021. Free cash flow turned negative for the first time since 2023 as the company poured money into AI data centers.