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Hyperscaler Amazon is pursuing a plan to reduce assets held on its books while raising external funds through the establishment of a Special Purpose Vehicle (SPV), the Financial Times (FT) reported on the 2nd, citing sources.
An SPV will be established, and $8 billion (approximately 10.8 trillion won) worth of Nvidia chips located in Amazon's data centers will be transferred to the SPV. Contractually, Amazon will lease these chips from the SPV.
The SPV, which owns the Nvidia chips, plans to issue corporate bonds or sell equity stakes.
As a result, this structure is advantageous for Amazon's financial health.
Amazon has recently been in contact with investors to sound out their interest in investing in this plan, according to the FT.
The objective of this scheme is "asset light-weighting," which reduces the burden of asset ownership by effectively selling high-priced Nvidia chips to investors.
Investors expect the SPV to also receive an investment-grade rating, given Amazon's current 'AA' credit rating. In this scenario, large institutional investors such as insurance companies and pension funds, which can only invest in safe assets, could participate in the purchase of corporate bonds.
Amazon also plans to allow investors to invest up to 10% of the SPV's equity. Ultimately, Amazon will not own any stake in this SPV.
Sources added that these discussions between Amazon and investors are ongoing and subject to change.
Amazon has already installed advanced chips, such as Nvidia's 'Grace Blackwell', which it has either purchased or leased, in more than 10 data centers across the United States.
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