Generac and Amazon Seal Massive Backup Generator Deal Worth $2.4 Billion

Generac Holdings' stock surged 20% on Thursday following a regulatory filing that revealed a long-term agreement between Generac and Amazon to supply backup generators for its data centers.

The deal, worth $2.4 billion in initial deliveries set for 2027 and 2028, is expected to support Amazon's rapidly growing artificial intelligence business. The agreement also includes a warrant for up to 1.69 million shares of Generac stock at $200.93 per share.

Amazon currently leads the global cloud computing market with a 28% market share, and its AI services business has topped a $25 billion annualized run rate. The company's Trainium chips and Graviton chips have also grown by triple-digit percentages over the last year.