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by tonyedgecombe 232 days ago
> They’re not “separate companies.”

They should be completely separate. If they were two independent companies, a low margin distribution and logistics company on one side and a high margin software services company on the other then nobody would suggest merging the two together.
1 comments
whatever1 232 days ago
How is AWS getting billions of cash and low interest rate loans for capex?

That’s right. The trillion dollar low margin dinosaur pays cash by writing close to zero profit in the books, and signs the bonds.

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motorest 232 days ago
> How is AWS getting billions of cash and low interest rate loans for capex?

AWS is the cash cow. It owns between a third and half of the world's cloud computing market. Do you think it's hard for AWS to get financing?

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whatever1 232 days ago
Yes. This year only they announced they will exceed 100B in AWS investment. This is almost as high as their 2024 revenue (not profit).

Which cloud company can casually find 100B cash in a year?

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motorest 232 days ago
> Which cloud company can casually find 100B cash in a year?

AWS. Because AWS reports close to $11B/quarter, which is over half Amazon's entire revenue, and AWS owns the cloud computing market, on which the whole world runs.

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whatever1 232 days ago
AMZN revenue was over $150B/quarter in 2024. AWS was around 25B. So closer 20% of AMZN revenue.

Probably you mean operating income.

The key number for operating a company is the free cash flow.

AWS does not have the cash flow to maintain its CAPEX. It currently uses part of Retail FCF and additional debt that the entire AMZN company takes.

NVIDIA does not offer you 10 year payment plan (like depreciation schedules assume). They ask for their cash upfront.

If it was that easy to find cash OpenAI would not have given up so much equity to dinosaurs with strong balance sheet.

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