# Amazon Shifted Nvidia Rack Ownership Before AWS Data Center Delivery By John Kim Canonical URL: https://www.tokenpost.com/news/business/36511 Published: 2026-10-21T09:02:25.000Z Updated: 2026-10-21T09:02:25.000Z Section: Business > An August forecast projected about $5 billion in GB300 rack deliveries that month, while some AWS sites lacked enough power to operate incoming equipment. Amazon’s August early receipt process shifted ownership of some Nvidia GB300 racks ahead of their arrival at Amazon Web Services (AWS) data centers, even as power shortages limited deployment at some sites. The process changed Amazon’s previous practice of taking ownership when racks reached a data center. An [August rack delivery forecast]() projected about $5 billion in deliveries that month and roughly $3 billion a month afterward. Those amounts were projections, not totals for completed deliveries. At the time, some AWS sites had room for incoming equipment but lacked enough electricity to run it. Finished racks could be staged near deployment sites while the facilities awaited power. The earlier transfer of ownership separated the point when Amazon acquired some racks from the point when those racks could be put to work. The timing came during a period of heavy companywide spending. Amazon recorded $96.3 billion in cash capital expenditures in the first six months of 2026, exceeding its $71.4 billion in operating cash flow over the same period. The capital expenditures also covered fulfillment capacity and infrastructure outside AWS. Amazon’s free cash flow was negative $7.6 billion for the year ended June 30, 2026, after a positive $18.2 billion in the comparable year-earlier period. AWS second-quarter sales rose 37% to $42.2 billion. The free cash flow figures cover trailing 12-month periods, while the capital spending and operating cash flow figures cover the first half of 2026. As of June 30, Amazon had approximately $496 billion in unrecognized commitments under customer contracts with original terms longer than one year. Those commitments were primarily related to AWS. When Amazon records the associated revenue depends on customer usage and its performance under the contracts. An Amazon spokesperson described staging finished hardware near deployment sites as “best business practice.” At a September staff meeting, AWS Vice President of Infrastructure Services Prasad Kalyanaraman described the machine-learning and AI business as “hugely free cash flow negative.” ## Links in this article - [August rack delivery forecast](https://www.tokenpost.com/news/business/36373)