TLDR
- Amazon is in talks to move about $8 billion of Nvidia chips off its balance sheet.
- The plan involves a special purpose vehicle holding thousands of Grace Blackwell chips.
- Amazon would lease the chips back from the vehicle for its data centers.
- Outside investors would fund the vehicle through debt, with Amazon offering up to a 10% equity stake.
- AMZN stock dipped 0.37% following the report.
Amazon (AMZN) stock slipped 0.37% after a Financial Times report revealed the company is looking to offload roughly $8 billion of advanced Nvidia chips to outside investors.
The report, citing people familiar with the matter, said Amazon held talks in recent weeks to gauge investor interest in the plan.
The structure would see Amazon spin off thousands of Nvidia’s Grace Blackwell chips into a special purpose vehicle. These chips are currently running in data centers across the U.S.
Amazon is exploring a deal to shift ~$8B of NVIDIA Grace Blackwell GPUs into an outside-investor-owned SPV, FT reports.$AMZM would lease the chips back, reducing the upfront balance-sheet burden.
The GPUs are already deployed across 12+ U.S. data centers. pic.twitter.com/XrKQyFGd6D
— Wall St Engine (@wallstengine) October 2, 2026
Amazon would then lease the chips back from that vehicle once it’s set up. It’s a bit like selling your car to a leasing company and then renting it back to drive to work.
The vehicle itself would be funded by outside investors through debt issuance, according to the FT report.
Amazon is also said to be considering offering up to a 10% equity stake in the vehicle to investors. That would mean Amazon holds no ownership stake in the entity itself.
Why Amazon Is Doing This
The goal here is simple on paper. Amazon wants to keep its balance sheet lighter by passing expensive chip costs onto outside investors.
This is an asset-light approach, meaning Amazon gets to use the hardware without owning it outright. It’s a financing trick other big tech firms have leaned on too.
Hyperscalers like Amazon are under pressure to fund massive data center buildouts without piling too much debt or depreciation onto their own books.
A large chunk of those buildout costs comes from the chips themselves. Nvidia’s top-tier AI chips don’t come cheap, and buying thousands of them adds up fast.
What This Means for Amazon’s Spending
Amazon has already said it plans to spend more than $200 billion in capital expenditure this year. Most of that cash is earmarked for Amazon Web Services.
AWS needs the funds to buy chips and build out new data centers to keep pace with AI demand.
Offloading $8 billion of hardware to a separate vehicle wouldn’t reduce Amazon’s need for computing power. It would just change how that power gets paid for.
The chips in question are already deployed and running. The FT report notes they span more than a dozen U.S. data center sites.
Neither Amazon nor Nvidia has commented publicly on the reported talks as of this writing.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
