Amazon is exploring a new financing model for its AI infrastructure by potentially selling Nvidia accelerators worth nearly $8 billion to a special purpose vehicle (SPV). Under this arrangement, the company would lease the hardware back, allowing it to retain access to thousands of Grace Blackwell systems already deployed across more than ten data centers in five US states.
The proposed structure involves the SPV purchasing the chips and raising additional funds through debt financing. Investors would hold up to a 10% stake in this entity, while Amazon would retain no ownership. The deal remains in preliminary discussions and terms are subject to change. This shift aims to transition some expenses from capital expenditures to an operating lease model.
The initiative addresses the massive scale of Amazon's AI investments, with capital expenditure plans for 2026 reaching $220 billion. AWS and Nvidia previously announced plans to deploy 2 million additional GPUs globally. Amazon estimates the lifespan of its server and chip hardware at 5–6 years, significantly shorter than the 30-year lifespan of its data center facilities.
The SPV's debt securities are expected to attract institutional investors, such as pension funds and insurance companies, due to Amazon's strong credit rating. This strategy provides Amazon with an alternative funding source as it prioritizes long-term AWS revenue growth despite short-term pressure on free cash flow.
