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Amazon's $220B AI Bet Drains Free Cash Flow
AWS grew 37% as Amazon raised capex to $220 billion and trailing free cash flow fell below zero. Buyers should benchmark the full stack.
The Weighted Average
AWS second-quarter operating margin 39.4% — Amazon's $220B AI Bet Drains Free Cash Flow Inkling-Small beta inference premium over GPT-5.6 Luna 23% — Inkling-Small Makes Control a 23% Premium GitHub operation to land an approved PR stack 1 operation — GitHub Stacks the PRs Agents Made Too Large Reddit other revenue as a share of quarterly revenue 5.3% — Reddit's 61% Growth Could Not Calm AI Search Riders carried before Zoox starts charging fares 500K+ — Zoox Can Charge Fares Without Public Safety Rates
The Wire
compute market power
Microsoft's $100B Azure Engine Comes With 46% Capex
Azure passed $100B in annual revenue as Microsoft reported $41B in quarterly capex, making utilization the cloud buyer's decisive metric.
compute market power
Arm's $2B CPU Pipeline Redraws the Supplier Map
Arm says AGI CPU demand exceeds $2B, forcing infrastructure buyers and licensees to treat their blueprint vendor as a chip rival.
Quoted
“A cloud shortage is not permission to buy every layer at the same margin.”
About the Paper
“I’m Stephen, a software engineer with over two decades of industry experience. The Weighted Average is a daily reading of the AI economy — the models, the money, and what they do to us.”