How Amazon’s Proposed Nvidia Chip Sale-and-Leaseback Could Work

Amazon is reportedly sounding out investors about a financing arrangement involving about $8 billion of Nvidia Grace Blackwell chips. Under the proposed structure, a special-purpose vehicle (SPV) would hold the chips and lease them back to Amazon, allowing the company to keep using the hardware. The talks are exploratory; no transaction has been announced. 12

How the proposed structure could work

An SPV is a separate vehicle set up to hold specific assets or arrange financing. In this reported plan, thousands of chips installed in more than a dozen U.S. data centres would be transferred to the vehicle. Amazon would then lease the hardware back for continued use. 14

The SPV would reportedly raise most of its funding through debt from outside investors. Reports also describe a possible equity stake of up to 10% for investors. The exact terms have not been confirmed. 112

Why Amazon might consider it

The arrangement could release capital tied up in expensive AI hardware and support a more asset-light balance sheet, while avoiding the need to stop using the chips. Reports frame the proposal as part of Amazon’s effort to strengthen its balance sheet amid heavy AI infrastructure spending. 116

It would not make the hardware cost-free. Instead of relying entirely on upfront funding to own the chips, Amazon would take on lease payments, while the SPV would need to service its financing. The structure shifts how the hardware is financed; it does not remove the underlying expense. 116

What remains uncertain

The reported investor discussions are a measure of interest, not evidence that a deal is finalized. The amount of debt, any equity terms, lease costs and final scope of the assets remain unconfirmed in the available reporting. 12