A sharp drop in cash flow
Amazon's free cash flow dropped to minus $42.4 billion. This shows that the cash the company generates is falling short of its expenses due to AI investments.
A $220 billion spending plan
The company aims to spend $220 billion on AI investments this year. Despite this, Amazon says it continues to believe in AI.
What it means
Free cash flow is the cash a company has left after capital expenditures. A negative figure means the company is investing more than it earns from operations. In Amazon's case, this gap is directly tied to money going into AI infrastructure.
