Amazon Explores $8 Billion Nvidia Chip Offload to Investors, FT Reports

Amazon.com, Inc. (AMZN) is exploring a plan to offload approximately $8 billion in advanced Nvidia (NVDA) chips to external investors through a special financing vehicle, according to a Thursday report from the Financial Times citing people familiar with the matter.

Details of the Proposed Transaction

The report indicates that Amazon has held talks with potential investors in recent weeks to gauge interest in the deal. The proposed structure involves spinning off thousands of Nvidia's Grace Blackwell chips into a special purpose vehicle (SPV).

Amazon would then lease the high-demand artificial intelligence chips back from the SPV for use in its U.S. data centers. To finance the acquisition, the vehicle would tap outside investors by issuing debt. The Financial Times also reported that Amazon plans to offer an equity stake of up to 10% in the vehicle, suggesting the tech giant will not retain its own stake.

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A Shift in Financial Strategy

This move signals a strategic effort by Amazon to strengthen its balance sheet and adopt a more asset-light approach to its massive infrastructure needs. By transferring the expensive chip assets to a separate entity, Amazon can reduce its direct capital expenditure burden.

The strategy reflects a broader trend among so-called "hyperscalers"—the largest cloud computing providers—who are seeking less balance-sheet-intensive methods to finance their colossal data center buildouts. The cost of advanced processors required to train and run AI models represents a significant portion of these expenses. Amazon has stated it will spend over $200 billion in capital expenditure this year, with a large share allocated to its Amazon Web Services (AWS) unit for chips and data centers.