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.

AMZN burned $7.6 billion in free cash flow over the past 12 months despite operating cash flow climbing 33% year-over-year to $161.4 billion. The company spent $169 billion during the period, with AI infrastructure capex driving the gap between operating cash flow and free cash flow into negative territory.

The spending spree forced AMZN to nearly double its long-term debt, which ballooned from $65.6 billion to $128.9 billion—a $77 billion increase. The debt raise underscores the magnitude of capital required to fund the company's AI buildout.

While earnings remain strong, the cash flow trajectory presents a different picture. AMZN is converting solid operating performance into negative free cash flow as it prioritizes infrastructure investment over near-term cash generation. The shift marks a notable departure from historical patterns where operating cash flow translated more directly to free cash flow.

The balance sheet now carries significantly more leverage to support the AI strategy, raising questions about how long the company will sustain this investment pace and when returns will materialize.