Generac disclosed that it granted Amazon warrants covering up to 1.69 million shares at an exercise price of $200.93, an option package worth as much as $340 million. In the same filing, Generac said the overall investment connected to the arrangement could reach up to $8 billion. Roughly 308,000 of the warrant-linked shares vested right away, and the remaining portions vest only as Amazon makes payments for generator purchases.
Amazon will buy backup power generators from Generac for its data centers, and the initial deliveries are expected to total $2.4 billion across 2027 and 2028. The warrant grant equates to almost 3% of Generac's outstanding shares. Generac's market capitalization was about $10.3 billion at Wednesday's close.
Generac surged more than 40% in after-hours trading Wednesday. For Amazon, this is another infrastructure swing. Last week it reached a deal with Qualcomm to use Qualcomm's custom AI chips and received warrants to acquire up to $4 billion of Qualcomm stock. Amazon Web Services is racing to add data center capacity as AI compute needs spike. Amazon also regularly takes stakes or warrants in suppliers, including Astera Labs, ATSG, Plug Power, and Spartan Nash.
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AI is hungry for power and chips, and this is what the buildout looks like in practice. When a heavyweight like Amazon lines up long-dated supply and pairs it with equity-linked incentives, it can ripple through equipment makers and the broader supplier chain. If you track AI infrastructure, watch who is winning orders and who is securing warrants.
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