Amazon was granted warrants to purchase up to $340 million of Generac stock late Wednesday as part of a deal to supply backup power generators for its data centers.
Generac announced in a securities filing that it granted Amazon warrants to purchase up to 1.69 million shares at $200.93 each, potentially valuing the total investment at up to $8 billion.
Following the announcement, Generac stock soared by 40%.
Generac will provide Amazon with backup power generators for its data centers, with initial shipments totaling $2.4 billion expected in 2027 and 2028, according to the filing.
The warrants represent about 3% of Generac’s outstanding shares, and the company has a market cap of about $10.3 billion.
The purchase follows Amazon’s deal with Qualcomm last week to use its custom artificial intelligence chips and to acquire as much as $4 billion in Qualcomm stock.
By CEO NA Editorial Staff
