3M said Amazon Web Services (AWS) plans to expand its use of optical connections in data centers, while a separate warrant to an Amazon subsidiary ties vesting of 85% of its shares to product payments.
The Oct. 21 announcement gave no rollout date, expected order volume or AWS spending estimate. A securities filing dated Oct. 19 identifies a wholly owned Amazon subsidiary as the warrant holder but does not name AWS as the holder. The warrant terms were covered in our earlier report.
The seven-year warrant gives the subsidiary the right to acquire up to 3,162,015 shares of 3M common stock at $164.89 per share. Vesting of 85% of the warrant shares depends on Amazon’s payments for 3M optical connectivity and other data center products. That portion vests in full once cumulative payments reach $6 billion; event milestones govern the remaining 15%. The filing does not require Amazon to spend $6 billion.
Reuters reported that 3M shares rose more than 5% in extended trading after the warrant announcement.
3M estimates the project could support more than 500 jobs overall. The company expects more than 100 new positions across Minnesota, Texas and Wisconsin by 2027. It also estimates that its optical connectivity business could contribute nearly $0.5 billion to the U.S. economy, without specifying a time period for that figure.
Jens Gruenkemeir, Amazon’s vice president of supply chain and procurement, said the effort reflects the company’s commitment to “supporting good jobs here in the U.S.”
The technology, called Expanded Beam Optical (EBO), is described by 3M as a durable, dust-resistant connection for high-density computing sites. In March, 3M announced a U.S. production expansion intended to more than double EBO capacity. The company said EBO had been commercially available since late 2024 and has pointed to AI data centers’ need for faster connections as a reason for expanding production.
