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Amazon Eyes $8 Billion Nvidia Chip Spinoff to Fund AI Expansion

Amazon Eyes $8 Billion Nvidia Chip Spinoff to Fund AI Expansion. Source: Martijn Boer, Public domain, via Wikimedia Commons

Amazon is exploring a plan to transfer roughly $8 billion worth of advanced Nvidia artificial intelligence chips to outside investors as the technology giant looks for new ways to finance its rapidly expanding AI infrastructure, according to a Financial Times report.

The company has held discussions with potential investors in recent weeks to assess demand for the proposed transaction. Under the plan, Amazon would move thousands of Nvidia Grace Blackwell chips into a special purpose vehicle, or SPV.

The Nvidia chips, currently deployed in data centers across the United States, would then be leased back to Amazon. The investment vehicle could raise financing from external investors through debt issuance, allowing Amazon to continue using the high-performance AI hardware without carrying the full cost directly on its balance sheet.

The proposed structure is designed to reduce Amazon's exposure to expensive computing equipment while supporting a more asset-light approach to its massive artificial intelligence and cloud infrastructure investments.

Amazon is also reportedly considering offering outside investors an equity stake of up to 10% in the SPV. The company itself would not retain an ownership interest in the vehicle, according to the report.

The potential deal reflects a wider financing shift among U.S. hyperscalers as major technology companies spend heavily on AI data centers. Advanced semiconductors, including Nvidia's latest AI chips, represent a significant portion of the cost of building the computing infrastructure required to train and operate increasingly powerful artificial intelligence models.

Amazon's AI spending plans are particularly large. The e-commerce and cloud computing company expects capital expenditures to exceed $200 billion this year, with much of that investment directed toward Amazon Web Services.

AWS is spending heavily on new data centers and computing hardware as demand for AI services accelerates. By moving billions of dollars of Nvidia chips into an externally financed vehicle and leasing them back, Amazon could potentially preserve balance-sheet capacity while continuing its aggressive AI infrastructure expansion.

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