Amazon Dumps $8B in Nvidia Chips on Investors as AI Bubble Fears Mount

Amazon is seeking to offload approximately $8 billion worth of Nvidia chips to investors, according to a report by the Financial Times. The move, which would mark one of the largest secondary sales of AI hardware, comes as the e-commerce and cloud giant looks to recoup costs amid soaring demand for generative AI infrastructure.

The chips, likely Nvidia's high-performance GPUs used for training and running AI models, have become a scarce and highly sought-after commodity. Amazon's decision to sell them to investors rather than deploy them internally could reflect a strategic shift to monetize its hardware investments or a response to cooling demand for cloud-based AI services. Neither Amazon nor Nvidia has publicly commented on the report.

If confirmed, the sale could have significant implications for the AI supply chain, potentially flooding the secondary market and affecting Nvidia's pricing power. It also raises questions about whether the AI investment boom is peaking, as major tech firms reassess their capital expenditures. Investors and analysts will be watching closely for official statements and further details on the buyers and terms of the deal.