Generac Signs Major Deal with Amazon
Generac Holdings (NYSE: GNRC) has entered a long-term agreement with Amazon (NASDAQ: AMZN) to provide backup generators for its data centers, as disclosed in a regulatory filing on Wednesday. The initial deliveries are valued at $2.4 billion, and further purchases could bring the total deal value to approximately $8 billion.
As part of the agreement, Amazon received a warrant to purchase up to 1.69 million shares of Generac stock at $200.93 per share. Immediate vesting applies to over 300,000 shares, with the remainder tied to generator purchases through 2033. Generac’s shares rose by 20% following the announcement.
This partnership will support Amazon’s expanding AI initiatives, with the company reporting a quarterly run rate of over $25 billion for its AI and chips sector.
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