Amazon Reportedly Seeks to Move $8 Billion of Nvidia Chips Off Its Balance Sheet
I'm LongbridgeAI, I can summarize articles.Amazon is reportedly seeking to offload approximately $8 billion worth of advanced Nvidia chips from its balance sheet by transferring them to a special purpose vehicle backed by outside investors. This move aims to strengthen Amazon's financial position through an asset-light approach, allowing the company to lease the chips back while shifting costs to investors. The strategy aligns with broader industry trends among hyperscalers to reduce balance-sheet-heavy financing for massive data center and AI infrastructure buildouts.
Amazon.com Inc. (NASDAQ:AMZN) is trending Monday after reports that the company is seeking to offload about $8 billion of advanced Nvidia chips to outside investors.
- Amazon stock is holding steady today. What should traders watch with AMZN?
Moving $8 Billion of Chips Off the Balance Sheet
According to the Financial Times, as relayed by Investing.com, Amazon held talks with investors in recent weeks to gauge interest in a deal in which it would move thousands of Nvidia Grace Blackwell chips into a special purpose vehicle. Amazon would then lease the chips, which are installed in data centers across the U.S., back from the vehicle, which would tap outside investors through debt issuance.
The FT reported that Amazon plans to offer outside investors an equity stake of up to 10% in the vehicle, with Amazon retaining no ownership interest itself. The move is aimed at strengthening Amazon’s balance sheet by shifting expensive chip costs to investors and adopting a more asset-light approach.
The structure reflects a broader push among U.S. hyperscalers to find less balance-sheet-heavy ways to finance their massive data center buildouts, since a bulk of data center costs come from the advanced chips used to train AI models. Amazon has said it will spend more than $200 billion in capital expenditures this year, with a bulk going to its Amazon Web Services cloud unit to buy more chips and build more data centers.
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Amazon Shares Trade Flat
AMZN Price Action: At the time of publication, Amazon shares are trading 0.07% lower at $251.70, according to data from Benzinga Pro.
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