Amazon, Broadcom Pile Into Off-Balance Sheet SPVs As AI Circularity "Undeniably Increasing"
I'm LongbridgeAI, I can summarize articles.Amazon and Broadcom are increasingly utilizing off-balance sheet Special Purpose Vehicles (SPVs) to support AI infrastructure, a trend described as 'undeniably increasing.' Hyperscalers combined with Nvidia and Broadcom have accumulated $3.1 trillion in off-balance sheet commitments, rising by $1.3 trillion in one quarter. Amazon's strategy involves selling chips and renting them back to maintain an 'asset-light' model, highlighting growing reliance on these financial structures for AI buildout.
Around five weeks ago, we updated our running tally of the "liabilities that aren't liabilities" propping up the AI buildout. The off-balance sheet commitments of the hyperscalers plus Nvidia and Broadcom had reached $3.1 trillion, up $1.3 trillion in a single quarter from the $1.8 trillion we first flagged in June. We said the number was only going one way.
It took until about half past midnight last night for two more data points to land within one minute of each other: