Amazon Plans Investment Vehicle to Offload $8 Billion in Nvidia Chips
New Financial Structuring to Lighten the Load
Amazon is seeking to transfer ownership of advanced Nvidia chips worth approximately $8 billion to investors through a private investment vehicle. The move aims to bolster and support its balance sheet, according to a report by the Financial Times citing sources familiar with the matter.
Leasing Model and Financing Details
The cloud technology giant has held talks in recent weeks with several investors to gauge interest in creating a Special Purpose Vehicle (SPV). The plan involves moving thousands of Grace Blackwell chips deployed across US data centers into the new entity, with Amazon subsequently leasing them back. The vehicle will rely on outside financing through debt issuance, allowing Amazon to adopt an "asset-light" strategy and reduce direct burdens from costly semiconductors.
Scope of Deployment and Investment Stake
Amazon plans to offer an equity stake of up to 10% in the proposed investment vehicle. These chips are currently installed in more than a dozen data centers across five US states, including Nevada and Virginia.