Key facts
- Amazon is seeking to sell approximately $8 billion of Nvidia chips to investors.
- The sale would be conducted through a new investment vehicle.
- The move aims to strengthen Amazon's balance sheet.
- Amazon is also developing its own AI chips, such as Trainium, to compete with Nvidia.
- AWS has seen surging demand for its own AI chips, with capacity selling out quickly.
- Amazon has an expanded partnership with Nvidia, agreeing to deploy millions more Nvidia GPU chips in its data centers through 2028.
Amazon is reportedly exploring the sale of approximately $8 billion worth of advanced Nvidia chips to investors through a newly established investment vehicle, according to a Financial Times report citing individuals familiar with the matter. This move is intended to strengthen Amazon's financial position.
While Amazon is seeking to offload Nvidia chips, it is also actively developing its own artificial intelligence processors, such as the Trainium chip, to reduce its reliance on Nvidia and potentially compete more directly in the AI chip market. Amazon's AI chief, Peter DeSantis, has indicated that AWS is in discussions to sell its Trainium chips to other companies for data center use. Amazon CEO Andy Jassy has also previously suggested the possibility of selling their homegrown AI chips, noting significant demand.
Despite developing its own chips, Amazon has also significantly expanded its partnership with Nvidia. The two companies announced a deal for Amazon to deploy an additional 2 million Nvidia GPU chips across AWS data centers between 2027 and 2028, driven by surging demand. This expanded partnership includes Nvidia's networking hardware, CPUs, data processing software, and robotics platform integration into AWS. Nvidia reported strong second-quarter sales of $96.2 billion, with its data center segment contributing $89 billion.