Calculation of the initial oxygen based on both phosphate and nitrate data collected along three WOCE transects indicates that the common assumption that new Antarctic Intermediate Water (AAIW) is initially saturated with respect to oxygen is incorrect. The initial oxygen concentration of AAIW is shown to be undersaturated, and the degree of undersaturation varies from year to year. Chlorofluorocarbon data is used to determined the age of AAIW at various latitudes and a frequency analysis of the variability in the initial oxygen concentrations is presented. Possible implications of this variability to the global carbon cycle are suggested.