1 hr ago
Amazon Weighs $8 Billion Nvidia Chip Sale-Leaseback Deal
Amazon is considering a new way to pay for its artificial-intelligence computer chips.
It may move about $8 billion worth of Nvidia chips into a separate company-like vehicle.
Investors would provide money to that vehicle.
Amazon would then rent the chips back for its own data centers.
This could help Amazon avoid keeping the full cost of the chips on its balance sheet.
The chips are being installed at more than a dozen data centers in five U.S. states.
Amazon may let investors own up to 10% of the vehicle.
The Financial Times reported that Amazon has been discussing the idea with investors, but no final deal was announced.
Amazon is exploring a deal to transfer about $8 billion in Nvidia chips to investors.
The proposed transaction would place thousands of Grace Blackwell chips in a special-purpose vehicle.
Amazon would lease the chips back for use in its United States data centers.
The chips are installed across more than a dozen data centers in five states, including Nevada and Virginia.
Amazon may offer investors up to a 10% equity stake while using debt financing to support the vehicle.
- Who
- Amazon is discussing the potential transaction with outside investors; Nvidia manufactured the referenced chips.
- What
- Amazon is exploring moving about $8 billion in Nvidia Grace Blackwell chips into a special-purpose vehicle and leasing them back.
- Where
- The chips are installed in more than a dozen Amazon data centers across five U.S. states, including Nevada and Virginia.
- When
- The Financial Times reported the discussions on Friday, after talks held in recent weeks.
- Why
- The proposed structure could strengthen Amazon’s balance sheet and support a more asset-light approach by transferring the chips to investors.
Key facts
- Estimated chip value
- About $8 billion
- Chip type
- Nvidia Grace Blackwell chips
- Proposed structure
- Special-purpose vehicle funded through outside investors and debt issuance
- Amazon’s use
- Lease the chips back after transferring them
- Potential Amazon equity stake
- Up to 10%
- Installation footprint
- More than a dozen U.S. data centers across five states
- Named states
- Nevada and Virginia are among the states identified
Sources
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