AWS Adopts Early Rack Receipt Process to Secure Nvidia GPU Supply

Amazon Web Services (AWS) has introduced a new process called “Early Rack Receipt,” under which the company takes ownership and pays for Nvidia GB300 racks before they arrive at data centers, according to internal Amazon documents obtained by Business Insider.

The move reflects intense competition for Nvidia GPUs. Amazon is locking in hardware before confirming whether installation space is available, in an effort to prevent rivals from securing the same supply. As a result, the company now pays for equipment before it is powered on.

Internal documents show Amazon expected to receive about $5 billion worth of GB300 racks in August 2026 alone and around $3 billion per month thereafter. Some of the hardware is being stored in “intermediate warehouses” because target data centers have space for more racks but lack sufficient power to turn them on. AWS CFO John Felton said at a September internal meeting that the company expects free cash flow to remain negative for “the next few years or so.”

Previously, Amazon paid for equipment only after it was installed in data centers. With the new early receipt process, cash outflows occur before the hardware generates revenue, and any installation delays further postpone the income-generating date. An Amazon spokesperson said the company’s standard practice is to store hardware near deployment sites while waiting for power to be ready, calling it a “best commercial practice.”