I'm LongbridgeAI, I can summarize articles.Amazon is reportedly negotiating to offload approximately $8 billion worth of Nvidia AI chips to outside investors via a special-purpose vehicle. This strategy aims to reduce capital tied up in data centers and strengthen its balance sheet amid rising capex expectations of $200 billion for 2026. Under the plan, Amazon would lease the chips back while offering investors an equity stake. Wall Street maintains a Strong Buy consensus on AMZN stock.
Amazon (AMZN) is reportedly seeking to offload about $8 billion worth of advanced Nvidia (NVDA) chips to outside investors, the Financial Times reported. The move would help Amazon reduce the amount of capital tied up in its AI data center buildout and strengthen its balance sheet.
Why Is Amazon Moving Nvidia Chips to Investors?
The report stated that Amazon has held talks with investors in recent weeks about moving thousands of Nvidia Grace Blackwell chips into a special-purpose vehicle (SPV). An SPV is a separate entity set up to hold assets or raise funds for a specific deal.
Under the reported plan, Amazon would lease the chips back from the SPV. The vehicle would raise money from outside investors through debt, while Amazon could offer investors up to a 10% equity stake.
The chips were bought or leased by Amazon and are already installed across more than a dozen U.S. data centers in five states, including Nevada and Virginia. The plan would let Amazon use the same AI hardware while taking some of the cost off its balance sheet.
Amazon's Rising Capex
The move comes as Amazon ramps up spending on AI. Amazon spent $44.2 billion on capex in Q1 2026 alone. The company expects to spend about $200 billion for the full year, nearly twice its 2025 outlay. Much of that spending is tied to AWS and its data center buildout.
The heavy spending is raising questions about how Amazon can fund its AI push while keeping its balance sheet in check. Management had previously warned that high near-term capex will weigh on free cash flow until new data centers and servers start generating returns.
Is AMZN Stock a Buy, Sell, or Hold?
Overall, Amazon stock earns Wall Street's Strong Buy consensus rating based on 39 Buys and two Holds assigned in the last three months. The average AMZN stock price target of $331.82 indicates 33.67% upside potential. AMZN stock is up by 7.6% year-to-date.