Amazon plans to offload NVIDIA chips worth $8B
What's the story
Amazon is in discussions with investors to transfer thousands of advanced NVIDIA chips into a special-purpose vehicle (SPV), Financial Times reported. The move could help the cloud giant offload about $8 billion worth of expensive artificial intelligence (AI) hardware from its balance sheet. The proposed deal would see Amazon leasing back these advanced chips from the SPV, which would raise funds through debt issuance.
Asset-light approach
Amazon aims to ease financial burden
The potential deal comes as part of Amazon's strategy to adopt a more asset-light approach to its balance sheet.
By offloading these expensive semiconductors, the company hopes to ease its financial burden.
The chips in question are Grace Blackwell models, which have been installed in more than a dozen US data centers across five states including Nevada and Virginia.
Information
Company exploring investor interest for potential arrangement
Amazon is also looking to offer an equity stake of up to 10% in the proposed SPV as part of this deal. In recent weeks, the company has been gaging investor interest for this arrangement.