As the market focuses on AI spending, October 2 brings a new consideration regarding Amazon (NASDAQ: AMZN). Not is it not whether they will continue to spend, but how will they fund that growth? AMZN closed at $248.23 on October 1, down 0.37%, before Reuters published a story reporting that Amazon was considering moving about $8 billion of Nvidia’s Grace Blackwell chips into a special-purpose vehicle and leasing them back. Oct 1’s closing price was not a market reaction to the funding story.

What draws my interest is the strong growth of AWS combined with rapid investment in data center and AI infrastructure. Amazon’s core business is healthy, but rapid investment has caused trailing free cash flow to rapidly decline. The stock is…