Amazon Seeks to Offload $8 Billion in Nvidia Chips Through Special Vehicle

Amazon is seeking to offload approximately $8 billion worth of advanced Nvidia chips to investors through a special-purpose vehicle (SPV), according to the Financial Times. The move aims to strengthen Amazon's balance sheet and adopt a more asset-light approach.

The SPV would tap outside investors through debt issuance, allowing Amazon to lease back the advanced AI chips from the vehicle. The cloud giant has reportedly offered an equity stake of up to 10% in the vehicle to attract investor interest.

Amazon purchased or leased the Nvidia chips, which are installed in over a dozen US data centres across five states, including Nevada and Virginia. This deal is part of Amazon's efforts to optimize its balance sheet and reduce costs associated with owning expensive semiconductors.