Amazon Seeks $8B Nvidia Chip Offload via Special-Purpose Vehicle
Amazon.com Inc (NASDAQ:AMZN) is exploring a way to offload around $8 billion in Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) chips by leasing them back from external investors. The e-commerce giant held talks with investors recently to gauge interest in the proposed deal, according to the Financial Times.
The move aims to strengthen Amazon's balance sheet by shifting expensive chip costs to investors and adopting a more asset-light approach. By spinning off thousands of Nvidia's Grace Blackwell chips into a special-purpose vehicle, Amazon can reduce its financial burden while still accessing the advanced AI chips used in data centers across the US.
The proposed deal involves raising funding from outside investors through debt issuance, with Amazon offering an equity stake of up to 10% in the vehicle. However, it's worth noting that Amazon would hold no stake itself, indicating a complete separation from the new entity. The Financial Times reported on Thursday that people familiar with the matter had confirmed the talks.