Amazon’s $41 Billion AI Side Hustle and a Cash Flow Crisis Collide
12.06.2026 - 17:43:40 | boerse-global.de
Jeff Bezos took the wraps off his newest artificial intelligence venture this week, a $41 billion startup focused on “physical AI” that counted JPMorgan Chase, Goldman Sachs and BlackRock among its backers. Yet for Amazon shareholders, the more pressing story is the dramatic squeeze on the company’s own free cash flow — a direct consequence of the massive capital spending required to keep Amazon Web Services at the forefront of the AI arms race.
Free cash flow over the twelve months through March collapsed to just $1.2 billion, a staggering drop from nearly $26 billion a year earlier. AWS, Amazon’s most profitable division, delivered first-quarter revenue of $37.6 billion and operating profit of $14.2 billion, but the expense of equipping data centers with next-generation AI hardware is swallowing those gains. The market has taken note: the stock shed more than 11 percent in the past 30 days, closing Friday at €204.45.
Bezos’s new company, Prometheus, completed a $12 billion Series B financing round that values it at roughly $41 billion. The startup is developing what it calls an “artificial general engineer” capable of designing and building complex systems such as engines and energy infrastructure. While no formal partnership with Amazon exists, Bezos left the door open for Prometheus to become an AWS customer or to supply tools for Amazon’s own data centers — a potential future synergy that does little to ease the immediate pressure on Amazon’s balance sheet.
Should investors sell immediately? Or is it worth buying Amazon?
On the operational front, Amazon is trying to address one of the most contentious issues surrounding data center expansion: water consumption. In 2025 its global data centers used just 0.12 liters of water per kilowatt-hour, seven times more efficient than the industry average of 0.84 liters. Overall water withdrawal fell 2 percent year over year even as AWS continued to expand capacity, thanks to intelligent cooling systems that rely on outside air 90 percent of the time. The company remains on track toward its 2030 goal of being “water positive,” with 75 percent of that target already achieved. These efficiency gains are crucial given rising public opposition to new data centers, where water usage and environmental concerns top local residents’ lists of grievances.
Amazon also expanded its carbon credit marketplace, the Sustainability Exchange, to the United Kingdom — the first international move for the platform, which launched in the US in March 2025. The service lets companies buy verified climate credits aligned with net-zero targets, giving Amazon another tool to burnish its sustainability credentials.
Despite these operational wins, the stock’s technical picture has grown fragile. The relative strength index sits at 33.3, just above the oversold threshold of 30. At €204.45, shares trade roughly 6 percent below their 50-day moving average of €218.19. The 200-day moving average at €199.49 provides a critical floor; institutional long-term investors watch that level closely. A break below would likely accelerate selling pressure. For all the upbeat headlines about Prometheus and water efficiency, the market’s attention remains fixed on the moment when Amazon’s AI investments start to generate returns that match their voracious appetite for capital.
Ad
Amazon Stock: New Analysis - 12 June
Fresh Amazon information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
