Amazon spent last year 100B in Capex. They announced they will spend 200B this year. These numbers are INSANE. Greater than GDPs of entire countries.
They literally don't have the cash to do it. Either they need to grow their cash flow significantly, or deplete their cash reserves or take a huge loan (likely a combination of them).
Jassy is playing Russian roulette with the company and his career.
I don’t understand this? Amazon is a profitable company, on the scale of tens of billions of dollars per quarter. They very literally do have the cash.
Am I missing some subtlety in their financial reporting?
When you present these numbers alongside each other, you imply that they will go from making ~$20b/quarter to losing ~$30b/quarter, which is not plausible to me.
Yes 100B in capex is unprecedented for Amazon (let alone 200). Last time they peaked Capex was at ~60B in 2021 when they decided to double their supply chain network.
So the marginal capex on gpus is likely 70-80% of their total capex