Amazon Sells Nvidia Chips in Balance Sheet Revamp

Amazon has announced plans to sell approximately $8 billion worth of high-end Nvidia chips through a newly established special purpose vehicle (SPV) in an effort to optimize its balance sheet.

This move is part of Amazon's strategy to transition towards a lighter asset operation model, particularly relevant in light of the rising costs associated with training advanced AI models for its cloud business, AWS.

The tech giant aims to transfer thousands of Grace Blackwell chips currently deployed in its U.S. data centers to the SPV and lease them back, maintaining its credit rating while enhancing financial flexibility.