One of the biggest AI hyperscalers in the market is starting to de-risk its balance sheet. Amazon (AMZN) reportedly wants to offload nearly $8 billion of its advanced NVIDIA (NVDA) chips to investors.
The Financial Times reported that Amazon wanted to open a special-purpose vehicle, or SPV, for investors. That would enable Amazon to spend even more money on chips amid its quarterly negative free cash flow situation. Investors would end up holding SPVs that hold Grace Blackwell chips running in U.S. data centers.
NVIDIA is reportedly seeking ways to spread the risk of the AI buildout losing its momentum. The media reported that the GPU giant discussed offloading the risk of capital-intensive chip financing to insurance firms and investors.
Treating GPU hardware as an asset class is troubling. If the AI bubble is in play, older chips appreciate. That enabled firms like SpaceX (SPCX), Meta Platforms (META), and CoreWeave (CRWV) to rent their AI data farms at a premium.
If AI chip demand unexpectedly collapsed, GPUs would depreciate. That would cause SPVs and the investable asset class of chips to fall sharply.
Currently, high bond yields are lowering the value of REITs. That downtrend would happen for chip SPVs if AMD, Nvidia, and Intel (INTC) prices unexpectedly fell due to an AI spending slowdown.
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