Amazon isn’t broke — but their AI ambitions are now bigger than even a highly profitable company can self-fund. That’s not a nothing-burger. When you’re structurally dependent on debt markets to execute your core strategy, ‘we make plenty of profit’ stops being a complete answer. Will all things AI looking a bit shaky at the moment, taking out massive loans to keep running faster is raising eyebrows.
But if you look at their numbers, they still can pay it back in a short period of time. Like 1-3 years.
And their core business is super stable even with AI.
So the only real risk is increasing operational costs but if they pay of the investment, they literlay could just stop the hardware from running and reduce the operational cost if there is no demand