Investing.com– Amazon is seeking to offload about $8 billion of advanced Nvidia chips to external investors, the Financial Times reported on Thursday, citing people familiar with the matter.
Amazon held talks with investors in recent weeks to gauge interest in the deal, where the company plans to spin off thousands of Grace Blackwell chips into a special purpose vehicle, the FT report said.
The e-commerce giant will then lease the advanced AI chips– which are being used in data centers across the U.S.– back from the vehicle, which would then tap outside investors through debt issuance the FT reported.
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The measure is aimed at strengthening Amazon’s balance sheet by unloading expensive chip costs to investors and adopting a more asset-light approach, the FT report said.
The move comes amid a broader push by the U.S.’ so-called hyperscalers in seeking less balance sheet-heavy means to finance their massive data center buildout. A bulk of data center costs come from the advanced chips used to train artificial intelligence models.
Amazon also plans to offer an equity stake of up to 10% in the vehicle, indicating that the company will not hold any stake in the entity, the FT reported.
The ecommerce giant said it will spend over $200 billion in capital expenditure this year, a bulk of which will go towards its Web Services cloud unit to buy more chips and build more data centers.
Original Article
Amazon seeks to offload $8 bln of Nvidia chips to investors- FT
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