The latest

Amazon is exploring a transaction that would move about $8 billion of advanced Nvidia artificial intelligence chips into an outside-investor vehicle while keeping the hardware operating in its own data centers. The proposed sale-and-leaseback structure would reduce the costly equipment held directly on Amazon’s balance sheet as it prepares for a sharp increase in spending on AWS, chips and AI computing capacity.

Details

• Proposed ownership: Investors would take ownership of thousands of Nvidia Grace Blackwell chips. Amazon would continue using them in its data centers by leasing the equipment back from the special-purpose vehicle, preserving operational access without keeping all of the hardware directly on its books.
• Funding design: The vehicle would seek money from external investors and issue debt to finance the assets. Amazon is also considering giving investors an equity stake of up to 10%, adding a direct ownership component alongside the borrowing.
• Deployment footprint: The chips have already been purchased or leased by Amazon and are being installed across more than a dozen US data centers in five states. Nevada and Virginia are among the locations involved in the deployment.
• Spending surge: Amazon expects capital expenditure to reach about $220 billion in 2026, with most of the money directed toward AWS, advanced chips and additional AI data-center capacity. The planned outlay underscores the scale of the infrastructure expansion behind the financing talks.
• AWS growth: AWS second-quarter revenue rose 37% from a year earlier to $42.2 billion. Amazon said demand for computing capacity remained strong even as it pursued an aggressive investment programme to expand cloud and AI infrastructure.
• GPU finance: Nvidia announced an initiative in August with Wall Street firms that could support as much as $500 billion of AI infrastructure financing, including structures using GPUs as collateral. Banks and credit investors remain cautious about how long advanced chips will retain significant economic value as newer generations arrive.
• Debt backdrop: Amazon sold $25 billion in bonds in July, with buyers seeking higher yields than in earlier offerings. Moving some chip financing to external investors would spread the burden while Amazon retains access to the computing equipment. Amazon and Nvidia did not immediately comment.

Between the lines

By separating ownership from operation, the structure would treat high-end GPUs more like financeable infrastructure assets. Its appeal depends partly on whether investors accept the risk that rapid chip upgrades could erode the economic value of today’s hardware before financing reaches maturity.

What’s next

The immediate indicator is whether Amazon and prospective investors settle final terms for the special-purpose vehicle, including its debt issuance, the size of any equity stake and the leaseback. The proposal remains under discussion and could change before an agreement.