Amazon Seeks $8 Billion Chip Financing Deal Amid AI Spending Worries

Amazon is exploring ways to offload $8 billion worth of Nvidia AI chips to investors through a new financing vehicle, according to a report by the Financial Times.

The proposed structure would shift part of the funding burden to outside investors as Amazon ramps up its AI infrastructure spending. The e-commerce giant has been investing heavily in data centers and advanced chips, with trailing-12-month free cash flow turning negative due to a $66.1 billion year-over-year increase in property and equipment purchases.

The move comes as Amazon's AI spending weighs on its cash flows. Despite a 3.9% decline in September, AMZN shares have gained 7.5% year to date, with the company investing heavily in data centers and advanced chips.