Amazon shares advanced in Tuesday trading as reports emerged that the company is exploring a financing structure involving approximately $8 billion worth of Nvidia chips. Amazon.com, Inc. (AMZN) traded at $255.30, gaining $3.90, or 1.55%, during the session. According to the Financial Times, the proposed arrangement would shift expensive computing equipment out of the company's direct holdings and into a separately funded special-purpose vehicle.

Amazon Explores $8 Billion Nvidia Chip SPV

Amazon has discussed transferring roughly $8 billion of Nvidia chips into a special-purpose vehicle, commonly known as an SPV. Under the proposed structure, the vehicle would raise outside capital through debt, helping to finance Amazon's rapidly expanding computing infrastructure. Amazon would then lease the chips back from the separately funded entity rather than retaining direct ownership of the equipment.

Such structures are a familiar tool in corporate finance: placing specific assets in a separately funded entity allows a company to raise debt against those assets while keeping them outside its consolidated holdings. What stands out in the reported talks is the collateral itself — Nvidia chips at the center of the AI computing buildout, in a volume that underscores how capital-intensive the hardware behind cloud and AI services has become.

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

The Nvidia chips were bought or leased for deployment across Amazon's growing American data center network. The equipment is slated to operate across more than twelve data centers located in five states, with Nevada and Virginia among the states hosting the new computing infrastructure.

Neither Amazon nor Nvidia had publicly commented on the reported financing discussions.

Amazon Expands AI and AWS Infrastructure Spending

The financing talks come as Amazon continues to commit significant spending to artificial intelligence infrastructure and Amazon Web Services. Management expects approximately $220 billion in cash capital expenditures during the current year, with the bulk of planned spending directed toward data centers, computing equipment, AI infrastructure, and AWS expansion. Outlays of that size have turned the question of how the buildout gets funded — on Amazon's own books, through debt issuance, or through vehicles like the reported SPV — into a substantive issue in its own right.

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

Amazon Chief Executive Andy Jassy previously said the infrastructure spending would pressure free cash flow in the near term. The proposed SPV, meanwhile, would place some chip ownership outside Amazon's consolidated asset base — a step that shows Amazon weighing financing methods beyond conventional borrowing as its infrastructure spending climbs.

AWS Growth Supports Amazon's Capacity Expansion

AWS continues to expand as corporate customers increase their spending on cloud infrastructure and computing services. Revenue from the cloud division grew 36.7% during Amazon's latest reported quarter, and AWS generated $16.6 billion in operating income over the same period.

Amazon also reported an AWS backlog of $496 billion, reflecting contracted business that customers have committed to purchase. Jassy said Amazon expects computing capacity constraints to continue through 2026, and he expects those capacity limitations to remain in place during 2027 as demand continues to grow. That combination of committed revenue and constrained supply forms the backdrop for Amazon's pursuit of additional ways to fund new capacity.

Amazon Chief Financial Officer Brian Olsavsky has outlined several funding options to support the company's expansion plans. The company 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 moves to increase its data center capacity. Whether the structure moves from discussion to a definitive agreement remains open, and its final terms would become clear only if Amazon confirms a finalized deal.