Amazon is reportedly looking to shift around $8 billion worth of advanced Nvidia chips to outside investors as it explores new ways to finance its rapidly growing artificial intelligence infrastructure.
The plan would allow Amazon to reduce the amount of expensive AI hardware held directly on its balance sheet while continuing to use the chips in its data centers.
Amazon Explores $8 Billion Nvidia Chip Deal
According to a Financial Times report, Amazon has recently held discussions with investors to measure interest in the proposed transaction.
The company is considering moving thousands of Nvidia Grace Blackwell chips into a special purpose vehicle, or SPV.
That entity would then hold the AI chips separately from Amazon.
Amazon Could Lease the Chips Back
Under the proposed structure, Amazon would lease the Nvidia chips back from the special purpose vehicle.
The chips are expected to remain in use across Amazon data centers in the United States.
The SPV could then raise financing from outside investors through debt issuance.
This would allow Amazon to continue using the hardware without carrying the full cost of ownership directly on its balance sheet.
Deal Could Strengthen Amazon’s Balance Sheet
The structure is reportedly designed to make Amazon’s business more asset-light.
Advanced AI chips are among the most expensive components of modern data center infrastructure.
By transferring those assets to outside investors, Amazon could reduce some of the capital burden linked to its massive AI expansion.
Hyperscalers Seek New Ways to Fund AI Growth
Amazon is not alone in looking for alternative financing models.
Major U.S. cloud and technology companies are investing heavily in data centers as demand for artificial intelligence computing continues to rise.
These so-called hyperscalers are increasingly searching for ways to finance infrastructure growth without placing all of the costs directly on their balance sheets.
A large share of data center spending comes from high-end processors used to train and run advanced AI models.
Nvidia Grace Blackwell Chips at the Center of the Plan
The proposed transaction would involve thousands of Nvidia Grace Blackwell chips.
These processors are designed for advanced artificial intelligence and high-performance computing workloads.
Demand for cutting-edge AI chips has surged as Amazon, Microsoft, Google and other major technology companies expand their data center networks.
Amazon May Offer Investors an Equity Stake
The Financial Times also reported that Amazon could offer outside investors an equity stake of up to 10% in the special purpose vehicle.
Amazon itself would reportedly not retain an ownership stake in the entity.
That structure would further separate the chip assets from Amazon while still allowing the company to lease and use them.
Amazon Plans More Than $200 Billion in Capital Spending
Amazon has already announced plans to spend more than $200 billion in capital expenditure this year.
A significant portion of that investment is expected to go toward Amazon Web Services.
The company is investing heavily in new chips, cloud infrastructure and data centers as it competes for a larger share of the artificial intelligence market.
AI Infrastructure Spending Remains a Major Theme
The proposed Nvidia chip deal highlights the enormous financing requirements behind the AI boom.
As demand for computing power continues to rise, technology companies are looking for more flexible ways to fund their infrastructure expansion.
For Amazon, moving billions of dollars worth of Nvidia chips into a separate financing vehicle could help support future growth while reducing pressure on its balance sheet.
