Amazon's unused GPU servers

Internal emails reviewed by Business Insider suggest that Amazon Web Services (AWS), a division of Amazon, was expected to receive about 5 billion dollars worth of Nvidia GB300 server racks in August, with an additional 3 billion dollars worth each month after that.

Challenges in deploying the servers

Some of these server racks remain powered off, as some AWS data centers in the United States lack sufficient electricity to install them. The servers are waiting for the completion of work in "intermediate" warehouses, which are used to hold equipment before it is deployed.

What are the GB300 server racks?

The GB300 are complete server racks sold by Nvidia, filled with graphics processing units (GPUs). These are used to run artificial intelligence models. Before the AI wave, AWS only became the owner of a rack once it was completed and delivered to a data center.

Amazon's strategy for reserving equipment

Now, Amazon is paying billions in advance to reserve the equipment earlier. An Amazon team expressed concerns about the lack of a clear forecast for when all these GPUs will be installed in their servers, highlighting the complexity of the deployment process.

The broader issue of "dark GPUs"

The phenomenon of Amazon's unused GPUs is not an isolated case. The American website TechSpot, which detailed the issue on October 24, categorized it under a phenomenon called "dark GPUs," referring to GPUs that are powered off due to a lack of power.

Challenges beyond power supply

Cloud giants are buying all the equipment they can and leaving a large part of it gathering dust on shelves, while the rest of the industry has to make do with the leftovers. However, blaming the power grid or construction permits is somewhat easy. Even if power were to arrive tomorrow, a data center requires concrete, steel, copper cable, electricians, and technicians to assemble the servers.

Amazon's ongoing investment

Amazon continues to buy about 3 billion dollars worth of Nvidia server racks per month, or around 36 billion dollars over a year. Amazon refers to this as "best practice." A company spokesperson described the storage of finished racks in warehouses as "best commercial practice."

Long-term expectations and financial impact

Andy Jassy, CEO of Amazon, recalled that AWS has already experienced a similar situation. Moreover, the company is counting on large financial returns in the long term, convinced that AI is a unique opportunity that no tech actor can afford to miss. In the meantime, the bill is already visible in the accounts.

Financial consequences for Amazon

The available cash flow of Amazon, that is, the money remaining after investments are paid, turned negative in the second quarter over twelve months, the first time since 2023. The group expects about 220 billion dollars in investment expenses this year and expects this cash flow to remain negative for a while.