Amazon's Free Cash Flow Went Negative by $7.6 Billion Even as Operating Cash Flow Rose 33%. Here's the Gap AI Capex Is Actually Creating.

Amazon generated $161.4 billion in operating cash flow over the past 12 months (up 33% YoY) but spent $169 billion, resulting in negative free cash flow of $7.6 billion. The company's massive AI capital expenditure spending is driving this cash burn, forcing Amazon to raise $77 billion in long-term debt, which increased from $65.6 billion to $128.9 billion. Investors should look beyond earnings metrics and focus on the concerning cash flow and balance sheet implications of AI spending.