Amazon Explores $8 Billion Nvidia AI Chip Financing Deal via Special Purpose Vehicle
Amazon is exploring an $8 billion deal to offload Nvidia AI chips to an external SPV and lease them back, aiming to fund massive infrastructure costs without harming its credit rating.
Amazon has held discussions with investors in recent weeks regarding a new financial initiative: transferring thousands of Nvidia Grace Blackwell artificial intelligence chips, valued at approximately $8 billion, to a special purpose vehicle (SPV) owned by external investors.
According to the proposed structure, Amazon would offload these assets from its balance sheet and lease the chips back from the new entity to maintain continuous operations at its data centers across the United States, sources familiar with the matter reported. The SPV would finance the transaction by issuing debt to institutional investors, alongside an offer to acquire up to a 10% equity stake in the entity. Amazon itself will not hold shares in the SPV.
The move is designed to address Amazon's massive capital expenditures in AI infrastructure—projected to reach roughly $220 billion this year, primarily within its AWS cloud division. Moving the assets off-balance-sheet will allow the company to continue utilizing the expensive hardware without burdening its balance sheet with direct debt that could jeopardize its high credit rating (AA). The new entity is expected to secure an investment-grade rating thanks to its ties to Amazon, opening the deal up to pension funds and insurance companies.
This step reflects a growing trend on Wall Street where AI chips are transitioning from mere technological assets into financial collateral for capital raising. Infrastructure firms like CoreWeave already utilize similar models, and Nvidia itself recently offered backing for chip-backed debt. However, these structures also draw criticism for obscuring the true extent of financial risk carried by technology giants.
