Amazon Obtains Right to Buy Up to $340 Million of Generac Stock

Amazon has secured the right to acquire a stake in Generac (GNRC), the Wisconsin-based maker of backup power generators, in a move that ties the technology giant's data-centre ambitions to a supplier of emergency power equipment. Under the arrangement announced on Wednesday, September 16, 2026, Amazon was granted warrants to purchase up to approximately 1.69 million Generac shares at a strike price of $200.93 per share — a total investment that could be worth as much as $340 million if fully exercised.

The warrants were issued to Amazon.com NV Investment Holdings and represent nearly 3 per cent of Generac's outstanding shares. At Wednesday's close, Generac carried a market capitalisation of roughly $10.3 billion. The strike price sits about 15 per cent above the company's closing share price of around $175, giving Amazon a discounted-risk equity position linked to its supplier relationship rather than a straightforward cash purchase.

How the deal is structured

The share purchase right is connected to a far larger commercial agreement. Generac will supply Amazon with backup power generators for its data centres under a contract worth up to $8 billion, with initial deliveries of about $2.4 billion expected during 2027 and 2028, according to Generac's securities filing.

• About 308,000 warrant shares vested immediately upon signing.
• The remaining shares unlock in tranches over the following seven years.
• Vesting of those tranches is contingent on payments for the generators.

Market reaction

Investors responded sharply. Generac shares soared more than 40 per cent in extended trading on Wednesday and were up roughly 25 per cent in regular trading on Thursday as the market digested the news. The structure drew attention because Amazon gains potential equity upside tied to a key supplier, while Generac locks in a major long-term customer for its data-centre power business.

The agreement underscores how the rapid expansion of artificial-intelligence infrastructure is reshaping the backup-power industry, with data-centre operators seeking reliable emergency generation to keep servers running.

Company details

Amazon.com, Inc. is a multinational technology company headquartered in Seattle, Washington, operating in e-commerce, cloud computing, digital streaming and logistics. Official website: amazon.com.