to leave a comment.
Hyper-scaler Amazon is pushing for a plan to raise external funds while reducing assets held on its books 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 Nvidia chips worth $8 billion (approximately 10.8 trillion won) 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.
As a result, this structure is designed to improve Amazon's financial soundness.
Amazon has recently been in contact with investors to sound out their interest in this plan, according to the FT.
The purpose of this scheme is 'asset light' – effectively selling expensive Nvidia chips to investors to reduce the burden of asset ownership.
Investors believe that since Amazon's current credit rating is 'AA', the SPV will also receive an investment-grade rating. In this case, large institutional investors such as insurance companies and pension funds, which can only invest in safe assets, can also participate in the purchase of corporate bonds.
Amazon also plans to allow investors to invest up to 10% in the SPV's equity. Ultimately, Amazon will not own any stake in this SPV.
Sources added that these discussions between Amazon and investors are currently ongoing and may 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.
Newsletter
Get key news delivered to your email every morning
to leave a comment.