Amazon (AMZN) Stock: Eyes $8 Billion Nvidia Chip Financing Deal as AMZN Gains

TLDR

• Amazon stock gains 1.55% as an $8 billion Nvidia chip SPV plan emerges
• Amazon may lease Nvidia chips back from a separately funded financing vehicle
• The proposed SPV could support Amazon’s massive AI and AWS spending plans
• AWS revenue grew 36.7% as Amazon continued expanding cloud infrastructure
• Amazon expects capacity constraints to continue through both 2026 and 2027

Amazon stock advanced during Tuesday trading as the company explored a financing structure involving about $8 billion of Nvidia chips. Amazon (AMZN) traded at $255.30, gaining $3.90, or 1.55%, during the session.** The proposed structure would shift expensive computing equipment into a separate special-purpose vehicle, according to the Financial Times.

Amazon.com, Inc., AMZN

Amazon Explores $8 Billion Nvidia Chip SPV

Amazon has discussed transferring about $8 billion of Nvidia chips into a special-purpose vehicle, commonly known as an SPV. The vehicle would raise outside capital through debt and help finance Amazon’s expanding computing infrastructure. Amazon would then lease the chips from the separately funded entity.

The company has held discussions with potential funding partners during recent weeks, according to the report. Amazon also plans to offer an equity stake of up to 10% in the proposed vehicle. However, the company has not announced a finalized agreement or confirmed the structure publicly.

Amazon bought or leased the Nvidia chips for deployment across its growing American data center network. The equipment will operate across more than twelve data centers located in five states. Nevada and Virginia are among the states hosting the new computing infrastructure.

Amazon Expands AI and AWS Infrastructure Spending

The financing talks come as Amazon continues significant spending across artificial intelligence infrastructure and Amazon Web Services. Management expects approximately $220 billion in cash capital expenditures during the current year. Most planned spending supports data centers, computing equipment, AI infrastructure, and AWS expansion.

Quarterly capital expenditures reached $53.1 billion as Amazon continued increasing computing capacity for cloud customers. Management previously expected annual cash capital expenditures of about $200 billion before raising that estimate. Higher memory costs contributed to the increase in expected spending during the year.

Amazon Chief Executive Andy Jassy previously said infrastructure spending would pressure free cash flow during the near term. Meanwhile, the proposed SPV would place some chip ownership outside Amazon’s consolidated asset base. Amazon and Nvidia had not publicly commented on the reported financing discussions.

AWS Growth Supports Amazon’s Capacity Expansion

AWS continues expanding as companies increase spending on cloud infrastructure and computing services. Revenue from the cloud division grew 36.7% during Amazon’s latest reported quarter. AWS also generated $16.6 billion in operating income during the period.

Amazon reported an AWS backlog of $496 billion, reflecting contracted business that customers have committed to purchase. Jassy also said Amazon expects computing capacity constraints to continue through 2026. He expects those capacity limitations to remain during 2027 as demand continues to grow.

Amazon Chief Financial Officer Brian Olsavsky has also outlined several funding options supporting the company’s expansion plans. Amazon issued debt this year while continuing major investments across AWS and artificial intelligence infrastructure. The proposed Nvidia chip vehicle would add another financing method as Amazon increases data center capacity.

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