Amazon’s free cash flow fell to minus $42.4bn over the 12 months to September. Spending on AI drove most of the drop, the company said on Thursday. A year earlier it was a positive $14.8bn.

The Amazon Q3 earnings showed revenue up 12% to $201.9bn and operating income up to $28.1bn, from $17.4bn a year earlier. Its operating margin of 13.9% was the highest Amazon has ever reported. Purchases of property and equipment rose by $94.8bn over the 12 months, mostly for AI, the company said.

Shares fell as much as 7% in extended trading on Thursday, Reuters reported . Revenue and earnings per share came in below analysts’ forecasts of $202.3bn and $1.96, CNBC reported .

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