Amazon’s ($AMZN) AWS says the cost of delivering a given level of AI intelligence is falling 10x-100x every 3-6 months.
AWS says cheaper inference could accelerate adoption as companies deploy AI agents at scale.
Amazon ($AMZN), Microsoft ($MSFT), Meta ($META), Alphabet ($GOOGL) and Oracle ($ORCL) are expected to spend $729B on AI in 2026.
Ameriprise says the only comparable investment boom, relative to GDP, was Britain’s 1840s railway mania.
AMAZON $AMZN IS EXPLORING A DEAL TO MOVE $8 BILLION OF AI CHIPS OFF ITS OWN BALANCE SHEET
The plan would shift thousands of Grace Blackwell chips across more than a dozen US data centers into a special-purpose vehicle funded by outside investors, according to the Financial Times
Amazon would keep using the hardware while moving to a more asset-light financing model. The vehicle could issue debt and sell up to a 10% equity stake to investors.
Under the proposed structure, Amazon would lease the advanced chips back from the entity - Bloomberg
Amazon $AMZN is looking at a new financing structure for roughly $8B of NVIDIA $NVDA Grace Blackwell GPUs.
Outside investors would fund an SPV with debt, the vehicle would own the chips, and Amazon would lease them for use across its data centers.
The setup would help Amazon finance its AI buildout without carrying the full asset load directly on its balance sheet.
Source: FT
Amazon is exploring a deal to shift ~$8B of NVIDIA Grace Blackwell GPUs into an outside-investor-owned SPV, FT reports.
$AMZM would lease the chips back, reducing the upfront balance-sheet burden.
The GPUs are already deployed across 12+ U.S. data centers.