Amazon is exploring a structure that would shift about $8 billion worth of Nvidia advanced chips to outside investors through a newly created special purpose vehicle, according to the Financial Times, citing people familiar with the matter. The talks have taken place over recent weeks as the company sounded out investor appetite for the deal.
Under the proposed arrangement, Amazon would separate thousands of Grace Blackwell chips deployed across U.S. data centers into the SPV, then lease the AI chips back for its own use. The vehicle would raise external capital by issuing bonds.
The report said the structure would let Amazon take a lighter-asset approach to balance sheet management by moving expensive semiconductor assets off its books. Investors expect the vehicle could secure an investment-grade rating based on Amazon’s current double-A credit profile, which could widen participation to buyers such as insurers and pension funds. Amazon is also said to be considering offering up to a 10% equity stake in the vehicle, a setup that would mean the company itself would hold no equity in the entity.
Amazon is seeking to transfer about $8 billion worth of advanced Nvidia chips to outside investors through a newly created vehicle, the Financial Times reported on Oct. 2, citing people familiar with the matter. BlockBeats carried the report.
According to the report, Amazon has spent recent weeks in discussions with investors to gauge appetite for the transaction.
The proposed structure centers on an SPV
Under the plan, Amazon would carve out thousands of Grace Blackwell chips deployed across data centers in the United States into a special purpose vehicle, or SPV. Amazon would then lease the advanced AI chips back from the SPV, while the vehicle would bring in outside investors by issuing bonds.
Balance sheet management is a key objective
By transferring these costly semiconductor assets to investors, Amazon could adopt a lighter-asset approach in managing its balance sheet, the report said.
Investors expect the entity to obtain an investment-grade rating, based on Amazon’s current double-A credit rating. That could open the deal to a broader pool of buyers, including insurance companies and pension funds.
Amazon is also planning to offer up to 10% of the vehicle’s equity, according to the report. That would mean Amazon itself would hold no equity stake in the entity.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
