• AWS expected to get $5 billion of Nvidia GB300 racks, followed by $3 billion more each month.
• Some of these GPU systems are being stored elsewhere due to lack of data center power.
• Amazon CEO Andy Jassy sees AI as a major opportunity, but getting capacity online is a challenge.

Amazon is racing to secure AI hardware earlier than before, even as data center power shortages leave some GPU systems waiting in warehouses.

Under a new Early Rack Receipt process, AWS expected to receive roughly $5 billion in Nvidia's GB300 server racks at US facilities before final deployment, according to August internal emails reviewed by Business Insider. The company projected roughly $3 billion more in GB300 racks each month "for the foreseeable future," one of the emails said.

Some AWS sites had room for more racks but not enough available power to turn them on, people familiar with the effort said, leaving finished equipment to be staged at intermediary warehouses until the facilities were ready.

At least one AWS team did not have "a clear forecasted path" for getting the incoming racks into data centers at the time, according to one of the emails.

Dark GPUs

A lack of new electricity capacity is one of several bottlenecks slowing the buildout of some AI data centers. This has led to a phenomenon known as dark GPUs, where AI chips and servers are purchased but can sit idle due to power supply issues or other challenges. (Dark GPUs can also refer to system design flaws that mean this gear isn't fully used after being plugged in).

This is partly why financial pressure is mounting on big data center projects. Money must be spent upfront to secure supplies of Nvidia GPUs and other valuable AI components. But if some data centers aren't ready to run, those early investments can tie up huge amounts of cash. Debt financing can fill in the gaps, but the market has become less willing to lend against some of these projects lately.

Trade-off

Amazon's early-rack program is one piece of the cloud leader's broader AI buildout, which is putting new pressure on its cash flow, as Business Insider exclusively reported this week. Amazon expects roughly $220 billion in capital expenditures this year — more than any Big Tech peer. Its free-cash-flow turned negative last quarter for the first time since 2023, and could stay negative for a while.

For AWS, the trade-off is securing scarce GPU racks before competitors do, even if some data centers are not yet ready to turn them on. But taking ownership earlier can tie up billions in equipment before it starts generating cloud revenue.

Previously, AWS took ownership of a finished rack only upon delivery to a data center, according to internal documents. Under the new approach, it can pay for and record certain racks earlier in the supply chain.

An Amazon spokesperson said the company routinely stages finished hardware near deployment sites so it can install it once capacity becomes available, calling the practice "best business practice." The spokesperson added that Amazon has long-established systems for tracking infrastructure assets and disputed that the broader company lacked a path for getting racks into data centers.

Amazon CEO Andy Jassy previously said the company has a "clear line of sight" to strong returns from its AI investments, calling the technology a "once in a lifetime opportunity."

"We've been through this cycle with the first big AWS growth wave, and liked the results," Jassy wrote in Amazon's annual shareholder letter. "We expect to feel similarly about this next wave."

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• Nvidia CEO Jensen Huang wants Europe to be less cautious in its approach to AI innovation.
• Huang told Germany's chancellor that the country and others in Europe are overreliant on regulation.
• "I think you overthink things," he told British journalists on a trip to the UK last week.

Cast off the shackles and be bolder, or risk losing the AI race for good.

That's the pointed message Nvidia CEO Jensen Huang has delivered to European leaders during his trip to the continent over the past week.

Over the last seven days, Huang has visited France, Sweden, the UK, and Germany ahead of Nvidia's GTC event in Berlin, which began Tuesday.

During that time, he's been clear that he believes the continent needs to move faster on artificial intelligence and rely less heavily on regulating the sector.

Huang made the case most directly on Monday evening in Berlin, during a public conversation with German Chancellor Friedrich Merz.

Asked how Europe should regulate AI, Huang said safety had to be paramount, but cautioned that policymakers could not regulate their way to technological leadership.

"There's nothing to regulate if the industry doesn't thrive," Huang told Merz, arguing that Germany needed to foster a domestic AI industry while ensuring it developed safely and responsibly.

He said that policymakers should focus on regulating AI applications, similar to the way they regulate products that use the internet, rather than trying to regulate the underlying technology wholesale.

"We should be regulating the applications right away," Huang said.

Merz replied that Europe was still trying to find the balance between innovation and regulation. The German leader said he did not believe "no regulation" was the right answer, but that overly tight rules were not either.

Huang’s response: "Give Germany a chance. Give this industry a chance."

The exchange came as Huang and Merz pitched AI as a potential answer to the economic malaise that led Germany into recessions in 2023 and 2024.

Huang said the country's manufacturing sector, engineering expertise, and industrial know-how are national resources, and that AI could help its companies turn them into an advantage in the next phase of the technology race.

"The next wave of AI is physical," Huang said, referring to robotics, manufacturing, cars, and heavy industry. "Electrons will never replace atoms."

It was the same urgent message Huang had delivered in London days earlier. Speaking to reporters last week, Huang said there was a "strange general behavior" going on in the UK.

He took a swipe at what he described as Britain’s tendency to dwell on failure.

"You have smart people, you have a great culture, you have young people, and the energy is vibrant. But for some reason, if there was a million reasons to win, you find the one reason not to do it."

"I think you overthink things," he added.

The remarks underscore a familiar tension in Europe’s approach to AI. The continent has moved early to establish sweeping rules for the technology, including the EU AI Act, while the US and China have pulled ahead in developing frontier models and the infrastructure needed to train them.

Huang, whose company dominates the market for the advanced chips powering the AI boom, is hardly a neutral observer. Nvidia stands to benefit enormously if governments and companies move faster to build AI infrastructure and deploy its technology.

Regardless of his stake in Europe's AI success, Huang's message was blunt. If the continent spends too long debating how to regulate AI, it may find that the meaningful innovation is done elsewhere.