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Amazon seeks to offload $8 billion of Nvidia chips to investors, FT reports
Amazon plans to lease back thousands of Grace Blackwell chips after placing them in a vehicle that could give investors up to a 10% stake.
- On Friday, the Financial Times reported that Amazon is seeking to offload about $8 billion of Nvidia chips into a special-purpose vehicle to strengthen its balance sheet.
- Under this proposed deal, Amazon would lease the advanced AI chips back from the SPV, which would tap outside investors through debt issuance to adopt a more asset-light approach.
- Thousands of Grace Blackwell chips, currently installed in US data centers across five states including Nevada and Virginia, would be moved into the entity.
- Amazon has held talks to gauge investor interest in the deal, which includes an equity stake of up to 10% in the vehicle.
- Neither Amazon nor Nvidia immediately responded to Reuters for comment regarding these reported plans outside regular business hours.
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Amazon seeks to offload $8 billion of Nvidia chips to investors, FT reports
·London, United Kingdom
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Amazon plans to offload approximately $8 billion worth of Nvidia Grace Blackwell chips to a private entity, secure funding from investors, and then lease the same chips back, in order to reduce the burden of its AI investments on its balance sheet.
With the aim of strengthening its balance sheet.
Amazon seeks to offload US$8 bil of Nvidia chips to investors, FT reports
BENGALURU (Oct 2): Amazon is seeking to offload about US$8 billion of advanced Nvidia chips to investors through a new vehicle to strengthen its balance sheet, the Financial Times reported on Friday, citing people familiar with the matter.
Coverage Details
Total News Sources12
Leaning Left0Leaning Right1Center4Last UpdatedBias Distribution80% Center
Bias Distribution
- 80% of the sources are Center
80% Center
C 80%
R 20%
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