Stocks
Generac Secures $2.4 Billion Deal with Amazon to Power AI Infrastructure
Generac Holdings (NYSE:GNRC) announced that it has signed a long-term agreement with Amazon (NASDAQ:AMZN) to supply backup generators for its data centers.
The deal is worth $2.4 billion in initial deliveries, which will take place in 2027 and 2028, according to Reuters. Additional purchases could bring the total value of the deal to $8 billion by 2033.
In exchange for Amazon's commitment to purchase Generac generators, Amazon received a warrant to acquire up to 1.69 million shares of Generac stock at $200.93 per share. The shares will vest in tranches tied to Amazon's purchases of backup generators through 2033.