Amazon reportedly plans to transfer about $8 billion worth of Nvidia chips to external investors.

According to the Financial Times, sources revealed that Amazon (AMZN.US) is seeking to transfer around $8 billion worth of advanced Nvidia chips to external investors through the creation of a new special purpose vehicle (SPV), in order to strengthen its balance sheet. In recent weeks, Amazon has been in discussions with investors to gauge market interest in this deal. Under the proposed scheme, Amazon will spin off thousands of Grace Blackwell chips, currently deployed across data centers in the United States, into the SPV. Subsequently, Amazon will lease back these advanced AI chips from the SPV, while the SPV attracts external investors by issuing bonds. By transferring these expensive semiconductor assets to investors, Amazon can adopt a more asset-light approach to balance sheet management. Investors expect that, based on Amazon’s current double-A credit rating, the entity will receive an investment-grade rating, thus paving the way for more widespread investor participation, such as insurance companies and pension funds. Amazon also plans to offer up to 10% equity in the vehicle, meaning that Amazon itself will not hold any equity in the entity.