Amazon seeks to offload $8 billion of Nvidia chips to investors, FT reports
Amazon plans to lease back thousands of Grace Blackwell chips after placing them in a vehicle that could give investors up to a 10% stake.
- On Friday, the Financial Times reported that Amazon is seeking to offload about $8 billion of Nvidia chips into a special-purpose vehicle to strengthen its balance sheet.
- Under this proposed deal, Amazon would lease the advanced AI chips back from the SPV, which would tap outside investors through debt issuance to adopt a more asset-light approach.
- Thousands of Grace Blackwell chips, currently installed in US data centers across five states, including Nevada and Virginia, would be moved into the entity.
- Amazon has held talks to gauge investor interest in the deal, which includes an equity stake of up to 10% in the vehicle.
- Neither Amazon nor Nvidia immediately responded to Reuters for comment regarding these reported plans outside regular business hours.
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43 Articles
Amazon Wants to Move $8 Billion in Nvidia Chips Off Its Books. Is AI's Financing Model Starting to Change?
Amazon (NASDAQ:AMZN) is in talks to move $8 billion of NVIDIA (NASDAQ:NVDA) Grace Blackwell chips into a special purpose vehicle, the Financial Times reported. The vehicle would sell debt to outside investors, buy the chips, and lease them back to Amazon. The hardware stays where it is. It is already installed in data centers across […]
Amazon to move US$8bn of chips off its books: ‘FT’
Amazon.com Inc is exploring a deal to shift about US$8 billion worth of top-end Nvidia Corp chips off its balance sheet, according to the Financial Times.The move would offload thousands of Grace Blackwell chips across more than a dozen US data centers into a special-purpose vehicle which would be f
Amazon seeks to offload $8 billion in Nvidia AI chips to investors as Big Tech turns to Wall Street for AI compute financing - Tech Startups
Amazon is seeking to move about $8 billion worth of Nvidia AI chips into an investment vehicle backed by outside capital, a financing structure that shows how far the AI infrastructure boom is pushing Big Tech into Wall Street-style financial […] The post Amazon seeks to offload $8 billion in Nvidia AI chips to investors as Big Tech turns to Wall Street for AI compute financing first appeared on Tech Startups.
Amazon is pursuing external financing by transferring its data center Nvidia chips to a Special Purpose Vehicle (SPV) and then leasing them back for use. This strategy aims to secure the funds necessary for data center operations while reducing the burden of directly owning expensive chips. The Financial Times reported on the 2nd, citing sources, that Amazon recently sounded out investors regarding this plan.
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