Amazon explores $8b Nvidia chip sale to outside investors
Amazon is exploring a plan to place about US$8 billion of Nvidia chips into a special-purpose vehicle backed by outside investors. The move aims to reduce the amount of assets on its balance sheet.
Amazon is considering a strategy to shift approximately US$8 billion worth of Nvidia chips by placing them into a special-purpose vehicle supported by external investors. This initiative is part of Amazon's effort to reduce the assets held on its balance sheet.
Under the proposed structure, Amazon would lease the chips back from the vehicle, which would raise debt financing. Amazon also plans to offer an equity stake of up to 10% to these investors.
The assets include thousands of Nvidia's Blackwell chips being installed across more than a dozen Amazon data centers in five US states, including Nevada and Virginia. These chips are crucial for Amazon's artificial intelligence and data processing capabilities.
Amazon and Nvidia have not yet responded to requests for comment. This move reflects a broader trend in the technology sector, as companies seek ways to manage significant capital expenditures and optimize their balance sheets while meeting the growing demand for AI computing power.