Amazon Tries to Unload $8B Nvidia Chip Burden
Amazon is exploring ways to remove $8 billion worth of Nvidia AI chips from its balance sheet. The tech giant is considering spinning off thousands of Nvidia Blackwell chips into a special purpose vehicle (SPV), allowing it to lease the chips back without keeping the depreciating assets on its books, according to The Financial Times.
This move would mark another instance of big tech companies seeking creative solutions to finance their massive data center buildout plans while minimizing risks and maintaining their margins and credit ratings. Amazon has already bought or leased these Nvidia chips, which are installed in data centers across five states, per the report.
The plan is part of a broader trend among large tech firms to keep off-balance sheet commitments in check. Nine of the largest U.S. tech companies had about $3 trillion in such commitments as of August, according to The Wall Street Journal.