3M expands Amazon data-center partnership with $521 million stock warrant

3M is expanding its commercial relationship with Amazon through a stock warrant worth more than $521 million at the stated exercise price. Reuters said the warrant allows an Amazon subsidiary to buy up to 3.16 million 3M shares over seven years at $164.89 each.

About 85% of the warrant shares become available as Amazon buys optical-connectivity and other data-center products from 3M, fully vesting when purchases reach $6 billion. The other 15% depends on milestone conditions.

The arrangement links a financial incentive to infrastructure supporting cloud computing and AI. 3M shares rose more than 5% in extended trading after the announcement.

3M described an expanded commercial relationship rather than an acquisition or ordinary equity investment. Reuters also noted Microsoft became the first hyperscaler to adopt 3M’s Expanded Beam Optics technology in AI data centers in July.

Image: Reuters.

Sources

• Reuters
• U.S. SEC filing