Amazon Weighs $8 Billion Nvidia Chip Spin-Off in Leaseback Deal
Amazon is in talks to spin off about 8 billion dollars of Nvidia chips into a new company. The tech giant would then lease the chips back for its data centres.
According to the Financial Times, the chips are Grace Blackwell systems spread across more than 12 data centres in five states, including Nevada and Virginia.
Under the plan, Amazon would transfer the hardware into a special-purpose company. Outside investors could take up to 10 percent of the equity. Amazon would keep no ownership stake but would lease the chips for its cloud operations.
The deal would free up cash for Amazon’s record spending on AI infrastructure. The company plans about 220 billion dollars in capital spending this year. CEO Andy Jassy raised the 2026 spending target by 20 billion in July.
Nvidia has encouraged such deals as demand for its AI chips outruns supply. The talks have taken place in recent weeks, the report said.
Amazon declined to comment. A deal is not guaranteed and terms could change.
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